pension contribution

A SEP (Simplified Employee Pension) is designed to do one thing - make it easy for small businesses to offer a pension plan, where those businesses may not otherwise have the time or money to administer a more complex plan. But as with all simple things, there is often a price - and in this case, it’s strict compliance with the rules - or else!

In a recent Tax Court case, a husband/wife business owner team found out just how high the price can be, when two entire year’s worth of contributions were disallowed for failure to follow the rules.