A SARSEP is a simplified employee pension (SEP) plan that permits contributions to be made through employee salary reductions.
SARSEP plans can not be established after December 31, 1996. New employees in businesses that had a SARSEP on January 1, 1997, can participate in their company’s plan.
If you have a SARSEP plan or participate in one at work, here’s information on how your plan works.
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Publication 4336, SARSEP Salary Reduction Simplified Employee Pension for Small Businesses
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Publication 4407, SARSEP Salary Reduction Simplified Employee Pension - Key Issues and Assistance
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Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)
Traditional SEP-IRAs are used to fund your SARSEP plan. Read more about how traditional IRAs work including information about setting up a SEP-IRA and making contributions and withdrawals.
Check out the ballpark calculator to estimate how much money you’ll need at retirement. The Social Security Administration website helps you estimate how much your Social Security benefit will be.
The Securities and Exchange Commission (SEC) has information on how to invest your IRA. Investing your IRA may seem like a big job. This information will give you the basic tools to get started on an investment program that makes sense for you.
Frequently Asked Questions has questions and answers often directed to the IRS about SARSEPs. Look for questions - and answers - about minimum required distributions here.
Keep Your Plan Running Smoothly
An annual check-up of plan operations is a good idea. This check-up list covers some of the basic requirements for keeping your plan healthy.
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Publication 4405, Have you had your Check-up this year? for SIMPLE IRAs, SEPs, and Similar Retirement Plans
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Mistakes happen! The IRS has retirement plan correction programs to help if you make a mistake operating your SARSEP IRA.
More Resources
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