if the plan was a SARSEP established before 1997, the corp can continue to maintain it and new employees hired after December 31, 1996, can participate in the existing SARSEP. The introduction of SIMPLE IRA plans is intended to fill the need for retirement plans like SARSEPs.
SARSEPS followed 401(k) contribution limits.
However, your low wages in relation to income and distributions is a tax issue for which you need professional advice.
