Pioneer Investments: Simplified Employee Pension Plan (SEP)


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Simplified Employee Pension Plan (SEP)

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.


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 $260,000 of compensation being taken into account, up to $52,000.
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 2014.²
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.
   

1. For 2013, no more than $255,000 of compensation may be taken into account, with a total plan contribution not to exceed $51,000.

2. $550 in 2013.

This material is not intended to replace the advice of a qualified attorney, tax advisor, investment professional, or insurance agent. Before making any financial commitment regarding the issues discussed here, consult with the appropriate professional advisor.

Before investing, consider the productís investment objectives, risks, charges and expenses. Contact your advisor or Pioneer Investments for a prospectus or summary prospectus containing this information. Read it carefully.

 

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. To obtain a free prospectus or summary prospectus and for information on any Pioneer fund, please download it here.

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