401k & Sep IRA
If an employer currently has a SEP for himself and his employees, can he implement a 401k and ALSO continue to fund the SEP? Is he better off just adding a profit sharing to the 401k rather than continuing the SEP?
If an employer currently has a SEP for himself and his employees, can he implement a 401k and ALSO continue to fund the SEP? Is he better off just adding a profit sharing to the 401k rather than continuing the SEP?
Permalink Submitted by mk foss on Wed, 2011-03-30 22:36
He could keep the SEP but it would be complicated in determining the contributions. A profit sharing feature on the 401k is much easier.