Advantages of a SEP-IRA
Your Advantages
You benefit because a SEP-IRA:
- Is the only plan you can estalish up to the tax filing deadline including extensions.
- Lets you decide what you wish to contribute each year up to 25% of compensation, or $44,000 for the 2006 tax year.
- Is easy to establish.
- Doesn't have an administration fee.
- Doesn't require an annual Form 5500 filing.
- Lets you deduct your tax-deductible company contributions as a business expense.
- Helps recruit and keep quality employees.
Employee Advantages
Plan members benefit because a SEP-IRA allows them to:
- Defer taxes on the amount saved and its earnings.
- Build their retirement savings.
This plan may be combined with a Money Purchase plan for increased contributions and deductibility.
