SEP and SIMPLE IRAs: A Comparison
The SEP and SIMPLE IRA plans are designed to meet the special needs of small business owners. Your plan choice will largely depend on how you prefer to fund the plan and whether or not you choose to allow employees to make elective deferrals to the plan. The following chart is a quick reference guide for you to compare key features of each plan:
Your New Retirement Plan in Three Easy Steps
1) Determine which plan is right for you.
Your H&R Block financial advisor can help you evaluate your business needs and understand key features of SEP and SIMPLE IRA plans. Together, you can choose the plan that best meets your needs as a small business owner.
2) Understand your contribution and withdrawal options.
Once you've selected a plan, your advisor will work with you and your tax professional to coordinate, if possible, contributions and withdrawals to maximize retirement savings and minimize taxes.
3) Establish your retirement plan.
Your financial advisor will help you every step of the way from completing IRS paperwork and enrolling employees to offering advice on investment options and ongoing administration of the plan.
Learn more about SEP IRA and SIMPLE IRA plans.