The minimum contribution made on behalf of an employee is 3 percent. If you're looking at these numbers and wondering whether you can manage to be this generous with employees, Evans says to consider that the government allows you to make a decision on whether to participate in a SEP plan after you've assessed your situation. In other words, you can decide whether to fund a SEP Year 2000 retirement plan as late as December 2000. Evans recommends that you think of it this way. In a smaller business, there is a kinship and commonality of effort.
People understand if the business is doing well.
If you'd like to make a comment on this story, e-mail bankrate editors . U.S. Highway 1, North Palm Beach, Fl. Bankrate Inc. all rights reserved. Inc. All Rights Reserved.