Anyone with earned income can contribute to an IRA. There are contribution limits and deduction limits if you are covered by a pension plan with your employer. Please see this link for more information. Traditional IRA
A Simplified Employee Pension (SEP) plan provides business owners with a simplified method to contribute toward their employees’ retirement as well as their own retirement savings. Contributions are made to an Individual Retirement Account or Annuity (IRA) set up for each plan participant (a SEP-IRA). SEP
How do I establish a SEP?
There are three basic steps in setting up a SEP, all of which must be satisfied.
- Adopt a formal written agreement by signing one of these documents:
- IRS model SEP using Form 5305-SEP PDF, Simplified Employee Pension - Individual Retirement Accounts Contribution Agreement;
- IRS-approved prototype SEP, offered by banks, insurance companies, and other qualified financial institutions; or
- individually designed SEP plan document.
- Provide each eligible employee with information about the SEP. If you established the SEP using the Form 5305-SEP, the information must include a copy of the Form 5305-SEP, its instructions and the other information listed in the Form 5305-SEP instructions. If you used a prototype SEP or individually designed SEP, you must provide similar information.
- Set up a SEP-IRA for each eligible employee with a bank, insurance company or other qualified financial institution. The employee owns and controls the SEP-IRA
