YEAR | CONTRIBUTION | CONTRIBUTION IF OVER THE AGE OF 50 | DEADLINE TO OPEN IRA | DEADLINE TO CONTRIBUTE TO IRA |
---|---|---|---|---|
2016 | $53,000 | N/A | 4/15/2017 (plus extensions) | 4/15/2017 (plus extensions) |
2017 | $54,000 | N/A | 4/15/2018 (plus extensions) | 4/15/2018 (plus extensions) |
- Easy to set up and operate
- Low administrative costs
- Flexible annual contributions
- Employer must contribute equally for all eligible employees
- Contributions an employer can make to an employee’s SEP-IRA cannot exceed the lesser of:
- – 25% of the employee’s compensation, or
- – $53,000 for 2016 ($54,000 for 2017)