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A Simplified Employee Pension Plan (SEP) is a type of business retirement plan available to business owners and their employees. Because of their similarity to IRAs, SEPs are sometimes referred to as "Super IRAs", however, there is an important difference. SEPs allow annual contributions to exceed $3,000.
Allows employees to save for retirement while providing a tax deduction for the business. A SEP also allows businesses to retain quality employees.SEPs allow business owners to contribute the lesser of 25 percent of their compensation or $45,000 annually (2007), limited by the compensation cap for the year. For 2007, compensation used in determining contributions will be limited to $225,000. Contributions made to SEP plans are tax deductible and grow tax-deferred. Business owners can exclude employees from the plan until they have worked for the business three of the immediately preceding five years and are over the age of 21..
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Neither Woodbury Financial Services, Inc., nor its registered representatives or employees, provide tax or legal advice. As with all matters of a tax or legal nature, you should consult with your tax or legal counsel for advice. |
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Securities and Investment Advisory Services offered through Woodbury Financial Services, Inc.,
Member FINRA, SIPC, and Registered Investment Advisor - Licensed in MO, IL, CA, NY
*** 111 West Port Plaza Drive Suite 300 Saint Louis, MO. 63146 ***
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