SEP IRA Fidelity Investments A Simplified Employee Pension Plan, commonly known as a SEP-IRA, is a retirement plan specifically designed for self-employed people and small-business owners. Its key features are highlighted below. When establishing a SEP-IRA plan for your business, you and any eligible employees establish your own separate SEP-IRA; employer contributions are then made into each eligible employee’s SEP-IRA. Plan eligibility Tax advantages SEP-IRA deadline Contribution flexibility Other key advantages   Plan eligibility You can establish a SEP-IRA if you: •   Are a sole proprietor, in a partnership, or a business owner (of either an unincorporated or incorporated business, including Subchapter S corporations); •   Earn any self-employed income by providing a service, either full-time or part-time, even if you are already covered by a retirement plan at your full-time job. Top   Tax advantages Tax-deductible contributions •   Up to 25% of compensation, as much as $44,000 for the 2006 plan year and $45,000 for the 2007 plan year.* Tax-deferred growth potential •   Any investment earnings grow tax-deferred until withdrawn. * The maximum compensation on which contributions can be based is $220,000 for the 2006 plan year and $225,000 for the 2007 plan year. For self-employed individuals, compensation means earned income. Top   SEP-IRA deadline The deadline to open and contribute to a SEP-IRA is: •   Your tax filing deadline (including any extensions). •   For most self-employed individuals and small-business owners, that deadline is usually April 15. Top   Contribution flexibility No annual contribution required •   Contribution percentage can vary each year, from 0% - 25% of compensation, up to $44,000 per participant for the 2006 plan year and $45,000 for the 2007 plan year.* •   All SEP-IRA contributions must be made by the employer, and the same percentage of compensation must be contributed for each eligible employee (based on W-2 wages) including the employer. •   Use our worksheet to calculate your SEP-IRA contribution. * The maximum compensation on which contributions can be based is $220,000 for the 2006 plan year and $225,000 for the 2007 plan year. For self-employed individuals, compensation means earned income. Top   Other key advantages Plan simplicity •   No complicated forms to fill out. •   No annual reports for you to file with the IRS. Attractive benefit for employees •   Offering a retirement plan can make it easier to attract and retain valuable employees. Top   Learn more about Fidelity Investments

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