To keep things simple…..Any employer such as sole proprietor, corporation, partnership, or even a nonprofit organization with one or more employees may establish a SEP Plan. If you are an owner of a S-Corporation or if you are a self-employed business owner regardless of whether you are the only employee of the business you still may establish a SEP plan. Individual employees may not establish a SEP plan; however if the employee is eligible to participate in the SEP plan, they must establish their individual Traditional IRA’s to which the employer will deposit SEP contributions. Usually, a traditional IRA account that receives Sep-employer contributions is referred to as a SEP IRA.
There are numerous advantages of having a Sep IRA rather than a traditional IRA if you qualify. If you live in Los Angeles, West Hollywood, Sherman Oaks, Encino, Beverly Hills, or any other dense neighborhood in Los Angeles county there are plenty of financial services providers, such as banks to help you set up a SEP IRA account. My advice is before you choose the right type of pension plan set up for yourself you may want to talk to your Los Angeles Tax Preparer or someone that provides tax services and Planning Services in the Los Angeles area. This type of conversation is usually done face to face with your accountant, so it would help if it was a local accountant in the Los Angeles area.
Saving money for your retirement is a very important part of wealth planning and should always be discussed as part of tax preparation services.
Here are some benefits of having a SEP IRA:
- SEP plan is easy to administer
- Start-Up and Maintenance costs for SEPs are usually very low compared to Qualified pension plans
- Contributions are discretionary
- Employees may use same account for their SEP Contributions as for their regular Traditional IRA Contributions
Any qualified Los Angeles accounting firm should be able to assist you with tax preparation services in Los Angeles. The right type of pension plan is a big part of good tax planning. If you have any questions regarding this article or need a CPA to take a look at your overall accounting, and tax planning needs give us a call.
Your friendly Los Angeles Accountants,
Call Velin & Associates, Inc. today at 424-274-1391 to schedule your consultation or visit our website for more details