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SEP IRA
SEP (Simplified Employee Pension) plans, since their introduction in 1978, have been a popular solution for small business owners. Improvements in contribution limits since 2002 make them even more desirable. Among their advantages, SEP's require little recordkeeping, minimum cost, minimal effort to administer, flexibility, and limited fiduciary responsibility. And, since 2002, contribution limits allow business-deductible contributions up to 25% of compensation** not to exceed $40,000 for 2003, and $41,000 for 2004!
** For 2004, the compensation cap is $205,000.
The Hartford offers the choice of mutual funds and variable annuities to suit your investment needs. Marketing materials are available to help you verify if it is the right plan for a business owner client, as well as, prospect, setup or transfer a current plan. Be sure to review the brochures and materials listed on this page.
An Example: Dan, recently incorporated his sole proprietor business and reports $80,000 of salary on his W2. Dan wants to maximize his contribution for 2003.
$80,000 |
Salary |
x 25%
________ |
Maximum SEP contribution |
$20,000 |
SEP contribution |
Dan's business can make this contribution up to the business tax filing date for 2002. The business deducts this contribution as an ordinary business expense at that time. Dan can change the contribution amount for the following year if desired.
*Reminder: SEP-IRAs can be established and funded up until the tax filing date (including extensions) of a business.
More information on Setting up an SEP.
To find out more about how a SEP
IRA, or a traditional IRA can help you meet your retirement
needs, call us at 801.377.1990 or fill out the form and we will contact you.
| Traditional IRA/ROTH | Pension Profit Sharing |
| SEP Simple IRA | 401(k) | Non-Qualified Retirement Strategies |
| IRA Rollover Strategies | Free Financial Newsletters |
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