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.

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

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.

Completed IRA Adoption Agreement. When applying on-line, this form is automatically incorporated into your application.

Even though the money owed to you and/or your IRA represents a claim in a bankruptcy estate, the IRS provides different tax treatment for IRA investments and/or distributions from such IRA investments. It is critical that you identify your claim as IRA investment if your investment was originally recorded as an IRA 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%.

If the SEP participant's modified adjusted gross income (MAGI) for 2007 is under $52,000 (single filer) or under $83,000 (married, joint filer), then a full deduction for a traditional IRA contribution is also permitted. The amount that may be deducted is phased out over the next $10,000 in income.

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").

Yes. You may make salary reduction contributions to your 403(b), and make contributions to a SEP-IRA. However, SEP IRA contributions are generally made by an employer. Therefore, you will need to have income from self-employment or from another employer in order to have contributions made to a SEP IRA on your behalf.

We have many investors who invest qualified funds in our trust deeds. It depends on the nature of the account you are considering. Please check with your investment adviser as to your ability to do this. Also, we can refer you to institutions that will accept qualified funds and allow you to self direct those funds into trust deed investments.

Yes. You can self direct all of these types of accounts. They can all be invested into the CHECK BOOK

A SEP is established by adopting a SEP agreement and having eligible employees establish SEP-IRAs. There are three basic steps in setting up a SEP, all of which must be satisfied. A formal written agreement must be executed. This written agreement may be satisfied by adopting an Internal Revenue Service (IRS) model SEP using Form 5305-SEP, Simplified Employee Pension - Individual Retirement Accounts Contribution Agreement. A prototype SEP that was approved by the IRS may also be used.

The limits in the preceding sentence apply in the aggregate to contributions an employer makes for its employees to all defined contribution plans, which includes SEPs. Only up to $225,000 in 2007 ($230,000 in 2008 and subject to annual cost-of-living adjustments for later years) of an employee's compensation may be considered. Contributions must be made in cash. Property cannot be contributed.

An IRA is a tax-deferred retirement account which allows an individual to set aside a certain amount per year with earnings tax-deferred until withdrawals begin at age 59 ½ or later. Only those who do not participate in a pension plan at work or who do participate and meet certain income guidelines can make deductible contributions to an IRA. All others can make contributions to an IRA on a non-deductible basis.