A Simplified Employee Pension Plan, commonly known as a SEP IRA, is a retirement plan specifically designed for self-employed people and small-business owners. You can establish a SEP IRA if you are a sole proprietor, in a partnership, or a business owner (of either an unincorporated or incorporated business, including Subchapter S corporations). A SEP IRA can also be established if you earn any self-employed income by providing a service, either full-time or part-time, even if you are already covered by a retirement plan at your full-time job. To establish a SEP plan, the employer must complete IRS Form 5305-SEP or an IRS approved prototype plan.
Please consult with you tax advisor on which IRA is the best fit for you.
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The tax information provided is for informational purposes only and is not intended, and should not be construed, as tax advice or a recommendation. Denmark State Bank does not provide legal or tax advice and you should consult with a professional tax advisor about your individual circumstances.