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SEPs are ideal for self-employed people and small-business owners who wish to make tax-deductible contributions of up to 25% of their income, while maintaining complete contribution flexibility each year. In general, you must contribute the same percentage of pay for yourself and any eligible employees through their IRAs. SEPs are the easiest retirement plans to administer and are a good choice for firms with few or no employees, including individuals who do either full-time or part-time freelance work.
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| Who May Establish |
Sole proprietors, partnerships, corporations, nonprofit, and government entities. |
| Establishment Deadline |
Tax filing date, including extensions. |
| Contribution Deadline |
Tax filing date, including extensions. |
| Who Contributes |
Employer. |
| Annual Contribution Limit¹ |
25% of pay (20% for unincorporated business owners) with no more than $255,000 of compensation being taken into account, up to $51,000. |
| Contribution Requirements |
Contributions are discretionary each year. |
| Employee Eligibility |
All employees age 21 or older who have worked three out of the last five years and have earned at least $550 in 2013.² |
| Vesting |
Always 100%. |
| Withdrawals |
Allowed anytime, subject to income tax. A 10% penalty may apply before age 59½. |
| Loan Feature |
Not available. |
| Plan Administration |
None. |
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Before investing, consider the product’s investment objectives, risks, charges and expenses. Contact your advisor or Pioneer Investments for a prospectus or summary prospectus containing this information. Read it carefully.
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