Allows individuals to direct pre-tax income, up to specific annual limits, toward investments that can grow tax-deferred. Distributions are taxed.
Contributions are not tax deductible and qualified distributions are tax free. Non-qualified distributions may be subject to penalty.
Savings Incentive Match Plan for Employees of Small Employers offers advantages to businesses with 100 or fewer employees earning at least $5.000 the prior year who do not have another retirement program.
Simplified Employee Pension plan allows employers to make a tax-deductible contribution on behalf of eligible employees. Employees do not pay taxes on SEP contributions. Distributions are subject to tax-withholding rules.