SEP & SIMPLE Pension Plans

SEP & SIMPLE Pension Plans

PlanPlan Establishment DeadlineFunding DeadlineContribution LimitEligibility Requirements
Simplified Employee Pension Plan (SEPP) IRC #408Tax filing deadline plus extensions.Tax filing deadline plus extensions.0%-25% or $55,000 (2018) and $56,000 (2019) whichever is less, based on the first $275,000* (2018) and $280,000* (2019) of compensation.Employer may require service of up to three of the five years preceding the year of contribution and 21 years of age.
Savings Incentive Match for Employees (SIMPLE) IRC #408October 1Tax filing deadline plus extensionsEmployee elective deferrals up to $13,000* under age 50 and $16,000* age 50 and over (2019)--employer elects either a dollar for dollar match of up to 3% of employee compensation (can be lowered to 1% in two out of five years) or provides nonelective deferrals of 2% of compensations Small employers with 100 or fewer employees who received at least $5,000 in compensation during any two previous calendar years and are reasonably expected to make $5,000 during the current year.

* Subject to cost of living increases. Compensation may be adjusted annually by IRS.

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