You have until your closing deadline, including extensions, to contribute to the previous year’s SEP IRA. The contribution must be made before filing your tax return. SEP plans areappealing because they are simple to establish and easy to manage , with very little required documentation . Thegreater SEP IRA contribution limit offers an exceptional opportunity to rapidly shelter savings in a tax-advantaged plan as you get ready for retirement. Numerous smaller companies favor the SEP because it allows them toprovide retirement savings benefits to their employees. There are no mandated contribution requirements for the SEPaccount , other than contributions must be consistant . A 20% contribution to one employee’s account requires a comparable 20% contribution to all eligible employee accounts. The employer may make decisions on how often and what amount will be contributed annually , and often bases the decision on the company’s net profit picture and prevailing economic conditions that impact the business . No contribution isrequired, so the plan can be put on hold if the employer chooses to do so. In a company plan, the maximum SEP IRA contribution limit is $49,000 annually, or 25% of the employee’s yearly salary . For a self-employed worker, the SEP IRA contribution limit is 20% or $44,000 per year, calculated on net profits of the business enterprise. These accounts are easy to set-up , and inexpensive to administer . Businesses frequently have the accounts held by a mutual fund company, allowing the individual employees to select their own investments from the allowable fundsapproved for the plan. Employees may choose more aggressive investments or very conservative ones, depending on their own goals and investment philosophy. Once contributed to their plan , the money is fully vested and can be rolled over into another type of IRA or, in the event of an employment change, transferred to a new employer’s qualified retirement plan. The greater SEP IRA contribution limit is just one of the positive aspects that make a SEP deserving of consideration.