IRS Publication 560: Retirement Plans for Small Business (SEP, SIMPLE and Qualified Plans)

DEFINITION of 'IRS Publication 560: Retirement Plans for Small Business (SEP, SIMPLE and Qualified Plans)'

A document published by the Internal Revenue Service (IRS) that provides information for business owners who wish to set up retirement plans for themselves and their employees. It outlines what type of plan to set up, how to set it up, how much can be contributed, how much is deductible, how to treat distributions and how to report information about the plan to both the IRS and to employees.


IRS Publication 560 provides specific information for Simplified Employee Pension (SEP), SIMPLE IRAs, and qualified plans, which include Keoghs (for the self-employed) and 401(k)s.

BREAKING DOWN 'IRS Publication 560: Retirement Plans for Small Business (SEP, SIMPLE and Qualified Plans)'

Contributions that a business owner makes to a personal plan or on behalf of the employees are typically allowed to be deducted. Each type of plan covered in the document has its pros and cons, and some plans are not available to employers of a certain size.


IRS Publication 560 provides a quick reference chart to employers, which indicates the last date for contribution in the tax year, the maximum contribution that can be made to the plan, the maximum deduction allowed, and when the plan can be set up.




RELATED TERMS
  1. IRS Publication 575

    A document published by the Internal Revenue Service (IRS) that ...
  2. Simplified Employee Pension - SEP ...

    A retirement plan that an employer or self-employed individuals ...
  3. IRS Publication 590: Individual ...

    A document published by the Internal Revenue Service (IRS) that ...
  4. Qualified Retirement Plan

    A plan that meets requirements of the Internal Revenue Code and ...
  5. IRS Publication 334: Tax Guide ...

    A document published by the Internal Revenue Service (IRS) that ...
  6. SIMPLE IRA

    A retirement plan that can be used by most small businesses with ...
Related Articles
  1. Investing News

    SEP vs. Keogh Plans: Which is Right for You?

    SEP and Keogh plans each have their pros and cons. Here's how to choose which one is right for you.
  2. Retirement

    Keough vs. SEP: Small Business Retirement Plans

    Running your own company can lead to great personal satisfaction, but it can make planning for retirement a huge headache. Here are two plan options.
  3. Professionals

    Other Qualified Retirement Plans

    FINRA/NASAA Series 26 Section 4 - Other Qualified Retirement Plans. In this section simplified employee pension (SEP) IRAs, savings incentive match plans for employees (SIMPLE), 457 governmental ...
  4. Professionals

    Keogh Plans (HR-10)

    Keogh Plans (HR-10)
  5. Retirement

    SEP IRA Limits in 2016

    Discover the SEP IRA limits for 2016. Included is a summary, plans that would be ideal candidates for SEP IRAs, and contribution and distribution rules.
  6. Entrepreneurship

    Plans The Small-Business Owner Can Establish

    Don't hesitate to adopt a smart plan for you and your employees.
  7. Professionals

    Other Retirement Plans

    Other Retirement Plans
  8. Professionals

    Other Employer-Sponsored Plans

    Other Employer-Sponsored Plans. Other Employer-Sponsored Plans: Simplified Employee Pension (SEP) IRA, Savings Incentive Match Plans for Employees (SIMPLE) and 457 Governmental Plans
  9. Retirement

    Retirement Planning For The Self-Employed

    Recent studies show that most self-employed Americans are saving little, if anything, for retirement. But making an investment in yourself is worth it.
  10. Taxes

    401(k) And Qualified Plans: Introduction

    By Denise ApplebyDuring retirement years, income for retirees usually comes from three primary sources: Social Security benefits The regular savings account of the retiree Retirement-plan ...
RELATED FAQS
  1. How can an entrepreneur save for retirement?

    Learn about the retirement savings plan options for entrepreneurs and small business owners, including administration and ... Read Answer >>
  2. How does a Simplified Employee Pension (SEP) plan work?

    Learn how small businesses and their employees benefit from a Simplified Employee Pension, or SEP, IRA, and discover how ... Read Answer >>
  3. How do I set up a 408(k) plan in my business?

    Understand the necessary steps for setting up a 408(k) retirement plan, and get an overview of the SEP and SIMPLE plan options ... Read Answer >>
  4. What are the Simplified Employee Pension (SEP) IRA contribution limits?

    Discover the 2014 employers' SEP IRA eligible contribution limits for employees and those who are self-employed. These limits ... Read Answer >>
  5. What are qualified retirement plan types?

    Understand the different types of qualified retirement plans and what they mean in terms of employee and employer contribution ... Read Answer >>
  6. Who is eligible to obtain a Simplified Employee Pension (SEP) IRA?

    Learn if an individual may contribute to a Simplified Employee Pension IRA when his or her employer offers a plan and how ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center