The SEP is an IRA-based

plan to which employers

may make tax-deductible

contributions on behalf of

eligible employees. The

employer is allowed a tax

deduction for plan

contributions, which are

made to each eligible

employees' SEP IRA on a

discretionary basis.

Employees do not pay taxes

on SEP contributions, but

the contributions are taxed

when the employee

receives a distribution from

the SEP IRA.

Any employee that is

eligible to participate in their

employer's SEP plan must

establish a Traditional IRA

to which the employer will

deposit SEP contributions.

SEP contributions become

Traditional IRA assets and

are subject to many of the

Traditional IRA rules,

including the following:

Any employer with one or

more employees may

establish a SEP Plan. This

includes sole

proprietorships,

partnerships, corporations,

and non-profit

organizations.

Contributions to SEP IRAs

are immediately 100%

vested.

914-276-6000

800-498-1819

Click on the link below to

fill out a New York Employee

Benefits Plans contact form.