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A Simplified Employee Pension (SEP) is a retirement plan provides retirement benefits for employers and self individuals. The Employers can set up a SEP IRA account for employees anytime prior to their own tax-filing deadline. Once the account is open, employees can choose where to invest it according to the age and retirement period. Investment generally includes stocks, bonds and mutual funds.

SEP Contributions
All eligible employers must set up a traditional IRA account to get SEP contributions. The SEP contributions are generally deposited in the traditional IRA account. But, some financial institutions require the traditional IRA labelled as SEP IRA in order to receive the SEP contributions. The contributions made by the employers have certain limits. It must not exceed 25 percent of employee’s compensation or 56,000 dollars of employee’s compensation. Because of the SEP IRA plan is based on traditional IRA, the same traditional IRA rules are also applicable to SEP IRA. Common rules include distribution, investment, contribution and deduction rules. Also, the SEP IRA account must meet the document requirement for both SEP IRA and Traditional IRA.

Why SEP is the favourite plan for investors?

1. SEP is easy to set up and administrate.
2. Requires low eligibility requirements.
3. It can be combined with a Traditional IRA or a Roth IRA.
4. Tax deductable contribution.
5. Has high contribution limits.

SEP Withdrawal Rules
The contributions and earnings in SEP can be withdrawn at any time. The withdrawal is included in the in the tax on the year received. The SEP contribution and earnings must be distributed evenly to all investors and it satisfies the IRS minimum distributions. Normally, a 10 percent tax rate applies if an investor makes a withdrawal before the age 59½. The contribution amount in SEP may be tax-free if it is combined with other retirement plans and individual retirement account.

Where to get a best SEP investment plan?
There are some best SEP IRA providers can help investors to set up a simple IRA account. One of the leading IRA account providers is Sprout IRA. They have experienced staff to work with you and make the set up process as simple as possible. They guide the investors on every step and help you to find the right solution in every investment plan. For more details about SEP Investment, visit their website at https://sproutira.com/

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Lehi, Utah 84043

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