A SEPP offers you and your employees distinct advantages. Contributions are tax-deductible and are not considered as taxable income to participants. Earnings on investments in an IRA accumulate tax-deferred until withdrawn. Your employer contributions are discretionary and flexible. This type of plan is easy to implement, administer and explain.
Employees control and direct the investments in their IRAs.
Both methods are subject to maximum limits. Annuities Using annuities to set up an IRA offers your employees a number of advantages. Contributions are tax-deductible, subject to certain limits. The employee has full control over the plan and its investments. An IRA is easy to establish and requires little or no administration.