Summary
Simplified employee pensions
Employers and tax advisers considering use of simplified employee pensions (SEPs) and salary reduction SEPs (SARSEPs) should be aware that these plans do not provide some of the protections that qualified plans do and possess some additional requirements. SEPs are only available to employers not participating in qualified plans, and more part-time employees will have to be included. Top-heavy and ADP tests still apply to SEPs. The number of employees is limited to 25 and 50% must participate for an employer to establish a SARSEP.See the full content of this document
Extract
The problem with SEPs.
Simplified employee pensions (SEPs) are frequently promoted by investment advisers as "no-cost" substitutes for qualified profitsharing plans. Likewise, salary reduction SEPs (SARSEPs) are promoted as "no cost" alterna...
See the full content of this document
Sponsored links
