SEPs are an easy alternative for cost-conscious employers
Article Abstract:
Simplified employee pensions (SEPs) are ideal vehicles for retirement planning for professional practices and small businesses. Under a SEP, employers contribute to the individual retirement accountants of the plan's participants. For most purposes, SEPs are treated like qualified plans, and under the Internal Revenue Code, SEPS are treated like defined contribution profit sharing and money purchase plans. SEPs are easy to understand and implement, are viable alternatives to 401(k) plans, and can help employers avoid discrimination provisions. In addition, they are less expensive to implement, easier to administer, and minimize the exposure of the employer to the Employee Retirement Income Security Act's fiduciary liability. The disadvantages to SEPs include: more liberal participation standards, the inability to issue loans, and restrictions on individual retirement accounts.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1990
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Salary reduction SEPs can be a low-cost employee benefit
Article Abstract:
Simplified employee pensions (SEPs) is popular among a growing number of small businesses mainly because they are easy to implement. Furthermore, SEPs with a salary deduction feature (SAR-SEPs) provide qualified employees with the option to make tax deferrals regarding their retirement savings. These employees may choose between making a contribution under the SAR-SEP and get the amount in cash. However, the SAR-SEP arrangement may not appeal to some small businesses, particularly those with top-heavy plans since the cost of making contributions will increase for these firms.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1992
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The financial security of private pension systems, part 2
Article Abstract:
Private pension systems, like other types of pension schemes, are vulnerable to financial risks. These risks may be in the conditions of fund insolvency, portfolio risk for the employer in defined benefit plans, risk of misappropriation, default by an entity other than the fund and longevity risks for plans paying out annuities. To avoid these risks, there must be government regulations concerning the stability of pension funds such as segregation of assets, licensing, capital funds, minimum funding requirements, supervision and insolvency insurance.
Publication Name: Financial Market Trends
Subject: Business
ISSN: 0378-651X
Year: 1998
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