SIMPLIFIED EMPLOYEE PENSIONS (SEPs)
01.Core Concepts
• Small business retirement plan • Employers can provide SEP benefits to domestic employees (SECURE 2.0) • Tax-deferred growth of contributions • Not a qualified plan, but has similar characteristics with unique rules: • More liberal coverage requirements • Unique contribution, vesting, and distribution rules • Investments limited based on IRA rules • Can be established as late as the extended due date of the income tax return • Generally established utilizing traditional IRA accounts • Roth permitted beginning in 2023