You can establish a SEP for a year as late as the due date (including extensions) of your company’s income tax return for that year. You can establish a SIMPLE-IRA plan effective on any date between January 1 and October 1 of the year for which you make your first contribution. However, if you previously maintained a SIMPLE-IRA plan, you can set up a SIMPLE-IRA plan effective only on January 1 of the year for which you make your first contribution.

There are no prohibitions on distributions from IRA-based plans. A participant can take distributions at any time. However, in addition to the distribution being taxable, it may be subject to a 10% additional tax if the participant has not reached age 59 1/2. If the distribution is taken in the first 2 years of participation in a SIMPLE IRA plan, the additional tax is increased to 25%.

The plan must be established and the contributions completed by the employerâ??s tax-filing due date, usually by April 15 following the tax year for which the deduction is taken.

Any employer can establish a SEP. However, if you establish a SEP, you may be restricted in maintaining another plan at the same time. Note that Salary Reduction SEPs (SARSEPs) cannot be established after 1996. Generally, only an employer with 100 or fewer employees can establish a SIMPLE-IRA plan. If you establish a SIMPLE-IRA, you cannot maintain any other retirement plan at the same time.

If you’re using a prototype plan, you will receive an amended plan from the financial institution that provided you with the plan. If, for some reason, you don’t receive (or haven’t yet received) a new plan document, contact your financial institution. While the financial institution provides many administrative services for your plan, it is the responsibility of you – the plan sponsor – to ensure that the plan is kept up-to-date with current law.

The deadline for SIMPLE contributions is the tax filing deadline of the company, including extensions. For a previous year contribution, the SIMPLE plan must have been established by October 1 of the year for which the contribution is being made. For Agents and Brokers | Insurance Forums | About Us | Privacy/Legal | Contact Us | Site Map | Site Menu

Yes, SEP and SIMPLE IRA's can be converted directly to a Roth IRA. In the case of the SIMPLE IRA, a 2-year holding period must be met before converting. You can fund a traditional IRA, a Roth IRA (if you qualify), or both, but your total contributions cannot be more than these amounts. Deductibility in traditional IRA's and eligibility for contributions to Roth IRA's can be subject to Modified Adjusted Gross Income (MAGI) phaseouts.

Yes, you can ‘convert’ your Traditional, SEP or SIMPLE IRA into a Roth IRA if you meet the requirements for a Roth IRA.

SEP IRA plans are used by sole-proprietors or small business owners for additional retirement savings, much like a large company would have a 401(k) or another qualified plan.

Our "Pay Yourself First" plan is designed to provide a convenient way for you to make monthly investments to your mutual fund account(s) by automatically withdrawing the funds from your bank or other Financial Institution. This program is ideal for investors who want to add to their accounts on a regular basis (Dollar Cost Averaging). Simply download the Pay Yourself First Form and follow the instructions to set up this service today. The Daily NAV is as of the previous business day's closing.

Yes you can but the two plans are treated as one for purposes of determining your maximum contribution limits. Since the Solo 401k allows for greater deductions on less income, having both may not make the most sense. Further, according to Mr. Boldragini ID#31-08350 of the IRS if you want to have both a SEP-IRA and a Solo 401k, you may not contribute to both in a given tax year unless you used a plan document other than the IRS model document for the SEP-IRA (i.e. IRS Form "5305-SEP").

A SEP can be set up for a year as late as the due date (including extensions) of the business's income tax return for that year.

No you may not. Because SIMPLE plans often have exclusive plan rules, they are generally not allowed alongside a Solo 401k. However, you can easily terminate your SIMPLE plan and start and contribute to a Solo 401k for this year. Here is where you can find information about SIMPLE plans and how the IRS says to terminate the SIMPLE. http://www.irs.gov/retirement/article/0,,id=111420,00.

quot;After the two year period, amounts in a SIMPLE IRA can be rolled over or transferred tax free to an IRA other than a SIMPLE IRA, or to a qualified plan, a tax sheltered annuity plan (Section 403(b), or deferred compensation plan of a state or local government." (emphasis added). Since a Solo 401k plan is a "qualified plan", so yes you can roll a SIMPLE IRA into a SOLO 401k after two years.

Sole proprietors can download and complete a SIMPLE-IRA account application and include that along with their plan documents. For plans with multiple participants, Fidelity will mail employee enrollment kits to you upon receipt of the plan documents. Additional enrollment kits may be ordered from a Fidelity Retirement Specialist by calling 800-544-5373.

Generally speaking, you are eligible for a SIMPLE-IRA as long as your business has fewer than 100 employees earning $5,000 or more in the preceding year. As you grow, other retirement plans may become more appropriate. Please contact a Fidelity Retirement Specialist at 800-544-5373 for more information.

SEP plan contributions are tax deductible. Amounts contributed remain tax-deferred, as do their earnings, until withdrawn and are taxed like Traditional IRA's on distributions, as ordinary income.

A SEP allows a self-employed person to contribute more to a retirement account than the current limits on 401(k) and IRA. For a sole-proprietor, the maximum contribution is 20% of net operating income, up to $45,000. If a small business owner allocates a specific amount of cash flow to salaries, the maximum SEP contribution is 25% of compensation, up to $45,000. There is no upper age limit on participation in a SEP.

No, SEP plans do not allow for employee deferrals. The employer has discretion whether or not to make contributions. They may contribute up to 15% of each employee's total compensation.

When you open a Rollover IRA to receive a qualified distribution, you can defer any current tax liability on that distribution and your funds can continue to grow on a tax-deferred basis until you withdraw them. Morgan Stanley and its Financial Advisors do not offer tax advice. Individuals should consult their personal tax advisor before making any tax-related investment decisions. Branch Locator | Site Map | Privacy | Terms of Use | Disclosures | Morgan Stanley DW Inc.

The primary benefit of establishing an IRA is the source of income it may provide during retirement. IRA owners may be eligible for tax deductions for contributions made to an IRA. IRA's also provide tax-deferred growth on the earnings.

SEP stands for "Student Education Plan." For more information, please contact the Department of Counseling at 510-436-2475.

If a prototype plan was used, the employer should have received an amended plan from the financial institution that provided it with the plan. If for some reason the employer didn't receive a new plan document, the financial institution should be contacted. While the financial institution provides many administrative services for the plan, it is the responsibility of the employer - the plan sponsor - to ensure that the plan is kept up-to-date with current law.

The deadline for employer SEP contributions is the tax filing deadline of the company, including extensions.

No. SEP contributions can be made to Traditional IRAs only. While it is possible to convert a Traditional IRA containing SEP contributions to a Roth IRA, subsequent SEP contributions must be made to a Traditional IRA.

Contributions must be made for each eligible employee in a SEP, even if over age 70 1/2. Such an employee must take minimum distributions, however. No, contributions are not required to be made every year, but in years contributions are made to the SEP, they must be made to the SEP-IRAs of all eligible employees. A SEP cannot have a last-day-of-the-year employment requirement. If the employee is otherwise eligible, they must share in any SEP contribution.

No, but the employee participant may convert the SEP IRA into a Roth and pay the tax due on the conversion.