A SEP IRA is a useful retirement planning tool for small business owners. It can be established anytime before the business's tax filing deadline plus extensions and contributions can be made up until the tax filing deadline plus extensions too. The flexibility of plan set up and funding dates make the SEP IRA a favorite last minute tax planning tool.
Contributions are limited to the lesser of $45,000 or 25% of eligible compensation. You do not have to make a contribution every year but when you make contributions they must be based on an allocation formula and must not discriminate in favor of highly compensated employees. When you make contributions they must be allocated to all employees who worked during the year even those who left or died before the contribution was allocated.
If you have questions or want more information on establishing a SEP IRA for your business please call us at 843.946.9868 or toll free at 877.946.9868. Or send a email to SEP@oakadvisors.com.
Oak Street Advisors 1335 44th Ave N Suite 201 Myrtle Beach, SC 29577 843-946-9868
The flexibility of plan set up and funding dates make the SEP IRA a favorite last minute tax planning tool.