Business Solutions: Retirement

SEP IRAs

Retirement Plan established by an employer.

The employer is allowed to deduct a percentage of the participant's compensation.
SEP contributions are deductible by the employer and are not included in the employee’s income for the year.
SEP contributions are not subject to Federal withholding, FICA or FUTA taxes, unless you are self-employed.
Interest earned on the SEP deposit is sheltered from federal and most state income taxes until withdrawals are made at retirement.

Employee-sponsored retirement plan.
Employer is eligible if it employs 100 or fewer employees.
Employee, by making elective deferrals, can defer current income taxation.
A person can contribute up to $7000 (if younger than age 50) or $7500 (if age 50 or older) through a salary-reduction contribution.
An employer is allowed to deduct the cost of these elective deferrals.
Interest earned on SIMPLE deferrals is sheltered from federal and most state income taxes until withdrawn.