It is cost effective and easy to maintain. Compared to traditional employer retirement plans, this plan mandates fewer reporting and disclosure requirements. With a SEP, employers receive a tax deduction on contributions they make for each eligible employee. Since employees decide how assets will be invested, employers have no fiduciary responsibility. It allows employees and employers to make pretax contributions.
Employers make contributions on behalf of their employees.
If you have IRAs at various financial institutions, it is wise to consolidate them all in one place. By gathering all your accounts at Hilliard Lyons, you will pay one annual custodial fee, instead of a custodial fee at each institution. Depending on the number of IRAs you have, consolidation can save you a considerable amount of money every year. Consolidation also provides a clearer picture of your assets. This gives you greater control and a better frame of reference in making sound investment decisions.