SEPs and SIMPLEs (Portfolio 368)


Kathryn Kennedy

Director, Center of Tax Law & Employee Benefits

John Marshall Law School

At a glance

I. SIMPLE Retirement Accounts
II. Simplified Employee Pensions (SEPs)
III. Deemed IRAs Under Employer Plans


Bloomberg Tax Portfolio, SEPs and SIMPLEs, No. 368, analyzes the rules that apply to simplified employee pensions (SEPs) and savings incentive match plans for employees (SIMPLE plans). This portfolio explains that a SEP is a retirement plan sponsored by an employer through which the employer makes contributions to the traditional IRAs of its employees. Although the rules applicable to traditional IRAs apply to employer contributions once they are made, separate eligibility, contribution amount and other rules apply to the SEP.

SIMPLE IRAs replaced salary reduction SEPs, except for certain grandfathered plans. This Portfolio explains in detail the rules that apply to SIMPLE IRAs. In addition, this portfolio discusses the distinctions between SIMPLE §401(k) plans and SIMPLE IRAs, and the application of the SIMPLE plan rules to the establishment and operation of the plan and the traditional IRA rules to contributions after they become assets of the plan.

Finally, this Portfolio explains deemed IRAs — separate accounts within a qualified retirement plan that receive voluntary employee contributions that may be treated as traditional IRA or Roth IRA contributions.

Request pricing

Subscribe to Bloomberg Tax to read the full portfolio. Already a subscriber? Login.

This site is protected by reCAPTCHA and the Google Privacy Policy, and Terms of Service apply.

By submitting my information, I agree to the privacy policy and to be contacted about Bloomberg Industry Group products and services.

View all portfolios