How would you like to potentially cut your tax bill by a considerable amount? This may be accomplished by taking advantage of the powerful tax-saving benefits of a Simplified Employee Pension retirement plan. These plans were specifically designed for small business owners. They are easy to set up and administer and are tailor-made for small businesses, yet many don't know about or aren’t taking advantage of this opportunity.
In only a few minutes, we can set up your SEP, fund it and select an appropriate IRA. You can contribute more than in a Traditional or Roth IRA, and every dollar you contribute can reduce the tax bill for your business. If your company has employees, we can help you determine plan eligibility requirements and any required employer contributions.*
*You must fund the contribution by your business tax return filing date. Ask us about eligibility requirements.
The Advantages of Opening a SEP
- SEPs are available to sole proprietorships, partnerships, C corporations and S corporations. Anyone who runs a business can participate.*
- Contributions to a SEP are tax-deductible and the business pays no taxes on investment earnings until withdrawal.**
- The account is easy to open using an IRS Model Agreement (5305-SEP), and no annual government filings are required. There are minimal or no administrative costs.
- For any tax year, the plan may be set up and funded up to the employer’s federal tax filing date, including extensions
- All contributions are made into a SEP-IRA of each participant’s choice, and all amounts are 100% immediately vested.
- Contributions are 100% discretionary, meaning they’re not required each year. They may be reduced or skipped in years when the business is not profitable.
- A SEP can also help attract and retain employees.
*S corporations must have W-2 wages.
** Withdrawals may be subject to income tax and if taken prior to age 59 1/2 , may be subject to an additional federal penalty tax
Contact us today to discuss your options. If it's too late for this year's taxes, let's make next year as profitable as possible!