A SEP IRA can be set up by many financial institutions, i.e., banks, investment firms. They are appealing for startups due to large contribution limits (up to $50,000), low administration, and flexibility, and are available for any size business. However, a SEP requires that all employees receive the same percentage distribution benefit from the employer, and does not allow the employee to make a contribution through their salary. Thus, they are more commonly used in sole proprietors/equal partnerships. If you would like additional information, please feel free to contact me.
Answered 1 year ago by Ryan Cain
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