SEP IRA (Self Employed Pension)
A SEP (Simplified Employee Pension) IRA is the way to go if you’re a small employer (typically less than 10 employees and many times just one employee) looking for a simple retirement plan that’s easy to install and administer. Most financial institutions will have the plan documents on file and it’s as easy as opening up any investment or bank account. For those of you that don’t know how easy it is, it’s as simple as filling out a couple forms and you’re good to go. Here are some items that you need to know about the SEP IRA for 2009 and 2010.
1. Last Minute Set-Up
The nice thing about a SEP IRA is you can open (or adopt) it at any point up until the due date of the employer’s income tax return, including filing extensions. If you are small business, a SEP IRA might be a better option than the Simple IRA or 401k. I’ve had several business owners who after meeting with their tax professional called me to set up a SEP IRA at the last minute. Never fun, but at least we know its an option. […]
