Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

11 SEP and SIMPLE IRA Tax Facts to Know

Your article was successfully shared with the contacts you provided.

Related — Ed Slott: Prep Your Clients for 2 Bills That Could Change IRAs in 2022

Simplified employee pension plans and savings incentive match plans for employees — known as SEPs and SIMPLE IRAs — can provide a significant source of income at retirement for your clients.

SEPs allow employers to set aside money in retirement accounts for themselves and their employees. This type of plan does not have the startup and operating costs of a conventional retirement plan and allows a contribution of up to 25% of each employee’s pay.

SIMPLE IRAs are similar in that they allow small-business owners to establish a retirement account for their employees with minimal startup resources. But there are key differences between the two investment vehicles, especially when it comes to contributions and benefits. 

Are you advising your clients correctly when it comes to SEPs and SIMPLE IRAs? See the gallery for 11 important tax and financial planning questions and answers advisors should be aware of regarding these investment vehicles and the taxation rules around them, according to ALM’s Tax Facts Online.

(Graphics: Chris Nicholls/ALM)


  • Learn more with Tax Facts, the go-to resource that answers critical tax questions with the latest tax developments. Online subscribers get access to exclusive e-newsletters.
  • Discover more resources on finance and taxes on the NU Resource Center.
  • Follow Tax Factson LinkedIn and join the conversation on financial planning and targeted tax topics.
  • Get 10% off any Tax Facts product just for being a ThinkAdvisor reader! Complete the free trial form or call 859-692-2205 to learn more or get started today.