SEP Plans
Simplified Employee Pension (SEP) Plan, is established by business owners to provide retirement benefits for the business owners and their employees. The contributions are easy to establish, maintain, and can lowers a taxpayers income tax liability in the contribution year. Employers must contribute the same percentage to all employees. Eligible requirements for employees must be at least 21 years or age, have worked at least three of the previous five years, and have received at least $550 in compensation for the tax year. SEP funds are taxed at ordinary income tax rates when qualified withdrawals are taken after age 59 1/2.