How Does A Sep Retirement Plan Work? 
SEP IRAs provide retirement benefits for the business owners and their employees . There costs are relatively low . The contributions are based of 25 % of your net income not to exceed the maximum limit of $ 51,000 . Theres no catch up provision for SEP IRA contributors over age 50 . SEP IRA are based on net income , so do the math first because you may discover that a 401k plan with catch up provisions may be a better deal for lower income filers . 