Saturday, November 05, 2005

Looking to really build up your Deferred Compensation?

If you have business, then you need to consider the following plan:
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.

To Establish the SEP
When establishing a SEP-IRA plan for your business, you and any eligible employees establish your own separate SEP-IRA; employer contributions are then made into each eligible employee's SEP-IRA.

Key features are highlighted below:
- Plan eligibility
- Tax advantages
- SEP-IRA deadline
- Contribution flexibility
- Plan eligibility

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);
Earn any self-employed income by providing a service, either full-timeor part-time, even if you are already covered by a retirement plan at yourfull-time job. Top

Tax advantages Tax-deductible contributions-
Up to 25% of compensation, as much as $41,000 for the 2004 plan year and$42,000 for the 2005 plan year.*
Tax-deferred growth potential Any investment earnings grow tax-deferred until withdrawn.

* The maximum compensation on which contributions can be based is $205,000for the 2004 plan year and $210,000 for the 2005 plan year. For self-employed individuals, compensation means earned income. Top SEP-IRA deadline The deadline to open and contribute to a SEP-IRA is: Your tax filing deadline (including any extensions). For most self-employed individuals and small-business owners, thatdeadline is usually April 15.