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Simple English definitions for legal terms

SEP-IRA

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A quick definition of SEP-IRA:

A SEP-IRA is a type of retirement account that employers can set up for their employees. It allows employers to contribute money to the account, which is tax-deductible and has low maintenance costs. The employer can choose to limit contributions when business is bad, but they must contribute the same amount for all employees. The annual contribution limit is high, up to 25% of employee wages or $58,000 in 2021.

A more thorough explanation:

SEP-IRA stands for simplified employee pension individual retirement account. It is a type of IRA plan that allows employers to contribute to their employees' retirement savings while also receiving tax benefits.

  • Employers can establish and contribute to a SEP-IRA
  • Employers have the flexibility to limit contributions when business is bad
  • Employer contributions are tax-deductible
  • Annual contribution limits are higher than other IRAs
  • Employees cannot contribute to a SEP-IRA

Let's say that John owns a small business and wants to provide retirement benefits to his employees. He decides to establish a SEP-IRA plan and contributes 10% of each employee's salary to their SEP-IRA account. If an employee earns $50,000 per year, John would contribute $5,000 to their SEP-IRA account. The contributions are tax-deductible for John, and the employees can benefit from the tax-deferred growth of their retirement savings.

Another example is if an employee earns $100,000 per year, the employer can contribute up to $25,000 (25% of the employee's salary) to their SEP-IRA account. This allows for higher contribution limits than other IRA plans, making it a popular choice for small business owners.

These examples illustrate how SEP-IRA works and how it can benefit both employers and employees in saving for retirement.

SEP | separate property

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@JumpySubsequentDolphin: I appreciate the vote of confidence
JumpySubsequentDolphin
22:58
@shaquilleoatmeal: I HAAATE JABID
shaquilleoatmeal
23:03
Lmaooo why that song is mad catchy
JumpySubsequentDolphin
23:04
they’re so icky
JumpySubsequentDolphin
23:04
mahrajan shabab falastin - such a weird song
shaquilleoatmeal
23:04
Duly noted 🫡
shaquilleoatmeal
23:05
Put me on some good music then
23:06
How does that video have 290M views it looks like it was shot on a budget of $2 and a bottle of Coke
shaquilleoatmeal
23:07
Do you listen to saint levant? That’s a dude who can speak 5 languages lmao
shaquilleoatmeal
23:07
lol back in the day that’s how videos were made and it was pure gold
23:08
Levantine truly is the best one day I’ll find the will to learn Arabic and I’ll go with Levantine
23:10
my friend from college learned arabic and she became fluent and spent a semester doing independent study in jordan. i thought that was cool
JumpySubsequentDolphin
23:11
@shaquilleoatmeal: wea’youneha by sana moussa is the song i have reserved for my wedding
JumpySubsequentDolphin
23:12
@shaquilleoatmeal: he’s a douche but his music can be fairly catchy
JumpySubsequentDolphin
23:12
@renard99: yes I’m loving the Levantine love!! and @eggan v cool Amman is one of my fave places
shaquilleoatmeal
23:16
Send me a link - I get a couple mixed results when I search
shaquilleoatmeal
23:17
Nvm I found it
shaquilleoatmeal
23:20
Sounds like someone’s playing the qanun?
JumpySubsequentDolphin
23:23
perhaps
JumpySubsequentDolphin
23:23
the lyrics are chefs kiss
shaquilleoatmeal
23:29
Tell me what it translates to tomorrow, I gotta sleep, Laylah sa'eedah 😴
JumpySubsequentDolphin
23:31
tusbihun ‘ala khair
HELLO ALL
whos awake \
JumpySubsequentDolphin
23:42
hi SPLITTY!!!
HIII DOLPHYY
stanford finally sent me a status checker tomight
do yall know if "Your file has been submitted for review" just means under review
Dkk
0:08
@SplitterusClitterus: really depends on the school. Could mean they have just received it. Could be it is under review. Could mean they already have a decision for you. For Stanford, idk.
Mmm ok thank you
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