Questions about Retirement Plans SEP-IRA Characteristics 1. A smaller company or sole proprietor seeking a flexible employer contribution plan with easy set up and administration. All types of employers, including self-employed individuals. Contributions are discretionary from year to year and determined annually by the employer. By tax filing deadline plus extensions.
Employers can choose to be less restrictive.
Taxed as ordinary income. Immediate vesting upon entry into the plan. By tax filing deadline plus extensions for the fiscal year. Completion of IRA adoption agreement and receipt of custodial agreement and disclosure statement by each participant. Completion of SEP prototype by employer.