Is It Right For You?
You're self-employed or a small business owner. You may have a couple of employees. You may even have a full-time job, in addition to running your own business, with an employer-sponsored retirement plan to which you contribute. What you don't have is the time or the money to spend on complex and costly plan administration.
You're looking for the least complicated plan out there—a low-cost and easy way to contribute toward your own retirement as well as the retirement of your employees. And because the world of the small business owner can be unpredictable, you want to be able to change the amount you contribute from year to year.
The Tax Benefits of a SEP-IRA
Contributions to a SEP-IRA are a tax deductible business expense and your earnings may grow tax-deferred.
Additional Advantages
- Easy to set up and maintain. A SEP-IRA requires no IRS filing or reporting.
- You may make high contributions. You may contribute up to 25% of your annual compensation—20% if you're self-employed*—or $49,000, whichever is less, for tax year 2009.
Your Next Step
Contact a Key Investment Team advisor to help determine if a SEP-IRA is right for you. You must establish your plan by April 15 (or your business tax-filing deadline) in order to contribute for that tax-year. Any tax-filing extension you receive also applies to establishing your plan.
*After subtracting the self-employment tax deduction, this percentage of business net profit is equivalent to the employee percentage given.
Key Investment Team does not provide tax advice. The structuring of a retirement plan can have significant tax consequences on you and your business. Investors should consult with their tax professional to determine the tax implications of this retirement plan structure.