A SEP IRA (Simplified Employee Pension Individual Retirement Arrangement) is a retirement tool suited to small businesses. A SEP IRA, like other forms of IRAs, generate money for the investor for retirement. The owner of a small business with one or more employees is eligible to open this plan for the company. Contributions, which are tax-deductible for the business or individual, go into a traditional IRA held in the employee's name. Under a SEP IRA, an employer contributes directly to traditional individual retirement accounts, rather than the employee making his/her own contributions. Although all individuals within the company (including the owner) will benefit from this plan, employees do not directly contribute to the investment. Like a traditional IRA, the money in a SEP IRA is not taxable until withdrawal.
Our Sgroi Financial Advisors would be happy to help you set up your SEP IRA for your small business.