Qualified Plans
What is a SEP?
Answer and explanation
Answer: C. IRS Publication 560 describes a SEP as a written plan that allows contributions toward the employer's own retirement and the employees' retirement without getting involved in a more complex qualified plan. Government deferred compensation describes a 457 plan, and a SEP is neither a defined benefit plan nor employee funded.Source: IRS Publication 560 — Pub 560, SEP defining feature
More qualified plans questions
- Which of these does IRS guidance describe as qualified plans?
- Who contributes to a SEP, and where do the contributions go?
- Why does it matter to an employer whether a retirement plan is qualified?
- By when may an employer set up a SEP for a given year?
- How does IRS guidance classify a 401(k) plan?
- How is a SIMPLE IRA plan funded?
621 New York questions like this one.
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