Setup A Simplified Employee Pension Plan (SEP) In Seattle, WA

Overview Of A Simplified Employee Pension Plan

SEPs are primarily used by owners with no/minimal employees. A SEP is easy to set up and maintain and allows for the deferral of up to $66,000 of income per year. If the owner has qualified employees, the owner is REQUIRED to contribute the same percentage of employee wages for each qualified employee as the owner chooses for him/herself.    

Primary User Of An SEP

  • Self-employed individual or small business owner, including those with employees

  • Available to sole props, partnerships, LLCs, C corps and S corps

Advantages Of An SEP

  • Easy to setup and maintain

  • Flexible annual funding requirements

  • Wide range of investment choices

Who Can Contribute To A Simplified Employee Pension Plan?

  • Funded solely by employer contributions

2023 Employer Contribution Limits

  • Up to 25% of compensation up to a maximum of $66,000

2023 Employee Contribution Limits

  • N/A

Admin Responsibilities

  • No employer tax filings; employee notification for employer's contribution, if made

Access to Assets

  • Withdraw at any time, but a 10% penalty may apply if under the age of 59.5 years.

Plan Set up Deadlines

  • Establish by employer's tax filing deadline, plus extensions, usually April 15th

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