In IR-2010-108, the Internal Revenue Service (IRS) announced the 2011 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.
2011 Compensation Limits Remains Unchanged
For 2011, the compensation limit will remain at $550.
Contact Vision Payroll for More Information on 2011 SEP Plan Changes