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Comparison Between a SIMPLE IRA and a SAR-SEPWhile SAR-SEP's (Salary Reduction Simplified Employee Pensions) have been grand fathered for companies who had plans in place prior to December 31, 1996 only SIMPLE IRA's or some form of qualified retirement plan are available to businesses today! Some small employers liked the SAR-SEP design due mainly to its simplicity. As with any plan design there are positives and negatives to consider to determine whether the simplicity of design is outweighed by it's limitations. While the SIMPLE IRA plan design may be a consideration, should you decide to upgrade from a SAR-SEP, we recommend you contact a pension specialist at EBP to determine the plan design best suited to meet your company's retirement goals. |
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