Make tax-deductible contributions with this easy-to-start and maintain plan

A SEP IRA is a retirement plan for self-employed business owners or corporations with few employees. SEP IRAs may not only be attractive to employees, they can also be quick and easy to set up and administer for small business owners. Consider a SEP if your business is new or has variable profits.

• Simple administration
• No employer tax filing
• No specific annual funding requirements
• Less restrictive participation requirements
• Flexible contributions

Employees must be age 21 or older, have earned at least $550 during the year and have worked three out of the five previous years. Employers may adopt less restrictive eligibility requirements so as not to exclude themselves from participating in the plan.

A SEP IRA must be established and funded prior to the employer's tax return due date, plus extension. Contributions can vary by year.

Employee contributions are not eligible for this plan.

2010: A maximum of 25% of compensation up to $49,000.