SEP and SIMPLE for small employers

If you’re a small business or organization employer – or if you’re self-employed – your professional community may seem more like a family. And because of those close relationships, perhaps it’s even more important for you to help your employees save for retirement. But offering a retirement savings program can sometimes be challenging and expensive for small employers. 

The good news is that two special programs have been established just for you:

• The Simplified Employee Pension (SEP)
• The Savings Incentive Match Plan for Employees (SIMPLE)

Your Everence representative can help you decide which plan is right for you. The plans are fairly similar. They both rely on traditional individual retirement accounts, provide tax deductions for employer contributions, and require far less paperwork than other retirement savings plans. And SEP and SIMPLE options available through Everence offer a wide range of stocks and bonds.

The major difference is that the SEP relies solely on employer contributions, while the SIMPLE provides a way for employees to contribute a portion of their salaries to the plan on a tax-deferred basis (which is matched by you).

These plans are subject to specific rules and requirements.