An individual retirement account (IRA) is a way to save money for retirement that provides tax advantages. A simplified employee pension (SEP) IRA is a retirement plan that can be established by either an employer or a self-employed individual. The employer makes tax-deductible contributions into the accounts of eligible employees. Employers can set up and fund a SEP IRA for themselves as well and take advantage of the tax benefits. Many employers like the SEP IRA because it does not have the start-up costs or operating expenses of other retirement plans. Employees like it because contributions can be as much as 25 percent of their pay.
The contribution an employer makes to the SEP IRA can vary each year, largely depending on the profitability of the company. The contribution to the account must be uniform for all employees. If you are considering setting up a SEP IRA at your company, consult the investment professionals at Savage & Associates.
Call 419-475-8665 or fill out our on-line request form for more information or to schedule an exploratory appointment with our experienced professionals at Savage & Associates.