A beginner's guide to Simplified Employee Pension Plans (or SEPs)

Many small business owners want to save for retirement for themselves, and help their employees save for retirement as well. Rather than going through the involved (and sometimes quite expensive) task of setting up a 401(K), small business owners can take advantage of one of two different plans the IRS offers that are easy to set up and administer. This video explores one of these plans: The Simplified Employee Pension Plan or SEP. The video covers the plan itself, how it works, and how to report the contribution on the business owner's tax return. SECURE 2.0 UPDATE: Employer contributions to SEPs may now be made to Roth accounts. 0:00 Introduction 0:37 SEPs: What they are and how they work 3:49 An example is in order 5:59 Reporting SEPs on tax returns 6:57 Conclusion To learn about the difference between traditional and Roth retirement plans, click here:    • Traditional or Roth?   Unsure as to what a Schedule K-1 is? Click here:    • K-1's (for Beginners!)   Resources and Additional Information: IRS Publication 560: "Retirement Plans for Small Businesses": www.irs.gov/pub/irs-pdf/p560.pdf IRS Form 5305-SEP: "Simplified Employee Pension--Individual Retirement Accounts Contribution Agreement": www.irs.gov/pub/irs-pdf/f5305sep.pdf IRS Schedule C (Form 1040): "Profit or Loss from Business": www.irs.gov/pub/irs-pdf/f1040sc.pdf IRS Form 1065: "Return of Partnership Income": www.irs.gov/pub/irs-pdf/f1065.pdf IRS Schedule K-1 (Partnership): "Partner's Share of Income, Expenses, Credits, etc.": www.irs.gov/pub/irs-pdf/f1056sk1.pdf IRS Form 1120-S: "U.S. Income Tax Return for an S-Corporation": www.irs.gov/pub/irs-pdf/f1120s.pdf IRS Form 1120: "U.S. Corporation Income Tax Return": www.irs.gov/pbu/irs-pdf/f1120.pdf Nerdwallet: "What Is a Simplified Employee Pension Plan? How SEP IRAs Work": www.nerdwallet.com/article/investing/what-is-a-sep… Wolters Kluwer: "SEPs are the easiest way to provide employees with retirement benefits": www.wolterskluwer.com/en/expert-insights/seps-are-… The Tax Geek on the Site Formerly Known as Twitter: @taxgeekusa The Tax Geek on Reddit: www.reddit.com/r/askataxgeek Image and footage credits: Storyblocks.com The images of "Howie," "Darren," "Aaron," "Karen," and "Freddie" were generated by thispersondoesnotexist.com (stability.ai) and any resemblance between these images and any person, living or dead, is coincidental and not intentional. NO OTHER ARTIFICIAL INTELLIGENCE WAS USED TO WRITE, EDIT, ANIMATE, VOICE, OR EDIT THIS VIDEO Intro Music: "Bluesy Vibes" - Doug Maxwell - YouTube Creator Music Outro Music: "Modern Attempt" - Track Tribe under license from YouTube Creator Music DISCLAIMER: This video is for educational and informational purposes only. It is not intended to render tax advice or financial advice for individual situations. If you have questions regarding your particular situation, please consult with a qualified tax or financial professional.

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