No matter what size business you run, you want to make sure your employees have the best opportunities to save for their future. A simplified employee pension plan (SEP) IRA is only one of the many options you can choose from. Here are three reasons why it may be the right choice for your business.
1. Your Determine How Much to Contribute
As the employer, you will determine how much gets invested in a SEP IRA. Your contributions are fully vested as soon as they are contributed, too. That is an attractive feature for many employers, and it may contribute to encourage participation in your retirement savings plan.
2. They Are Very Simple To Set Up
With an easy setup process and its low administrative costs, a SEP IRA may be preferable to a traditional pension plan. They are very versatile and can be established by sole proprietors, partnerships, and corporations.
3. Contribution Limits Are Higher With SEP IRAs
Although SEP IRAs are treated as traditional IRA accounts for most purposes, they have higher allowed contribution limits. That makes them an excellent vehicle to maximize your personal retirement savings if you are a business owner.
