Salary Reduction (The Simple Plan)

The Jacobs Company Employee Sponsored Plans Salary Reduction SEPs (Simple Plan)

Advantages To Employer

A. No employer contributions are required, unless the plan is "top heavy" and a highly compensated participant defers.
B. Reporting is very minimal (no 5500 series IRS returns).
C. The plan is easy to understand by the employees.
D. The plan is easy to set up by completing IRS Form 5305A-SEP.'
E. There is little or no administrative expense.

The Basics
Advantages to Employees
Disadvantages to Employer
Disadvantages to Employees

This document was last modified on July 27, 1999