In IR-2008-118, the Internal Revenue Service (IRS) announced an increase for 2009 to the compensation limitation for Simplified Employee Pension (SEP) plans. Under §408(k)(2) of the Internal Revenue Code of 1986, SEP contributions are generally required for any employee of an employer with a SEP plan who has attained age 21, has performed service for the employer during at least three of the immediately preceding five years, and received at least a certain level of “compensation” from the employer for the year. For 2009, the compensation limit will increase to $550 from $500 in 2008. Contact Vision Payroll if you have questions on changes to the 2009 SEP Compensation Limitation or visit our Important Facts and Figures page for further information.