Being able to postpone payments until the end of the businesses tax filing extensions is very advantageous, especially those companies attempting to do last minute tax planning or those firms managing temporary cash flow problems around April 15th for individuals and partnerships, or March 15th for corporations. Not only are these advantages to the employer, but the employee benefits as well. The money that is put into an account by the employer, as well as the interest on the contribution, immediately belongs to the employee. Employees have the right to the money even if they quit or are terminated. This also includes interest earned on the account.
Employees are in full control of their individual accounts.
They can have the money invested however they choose. In the case of an employee's death, the assets in the individual IRA account will go to whomever the employee has chosen as the beneficiary of the account. Lets look at how you establish a plan. The process to establish a SEP-IRA in a business is quite simple. This is a model SEP agreement.