Not a Mere Technicality-SEP Disqualified

Simplified employee pensions (SEPs) are a popular retirement plan for extremely small businesses, with one of the key attractions being that don't require many of the formalities of regular qualified plans.  But that has led to taxpayers treating them too informally, and in the case we look at this week (Brown v. Commissioner, TC Summary 2008-56) a taxpayer discovered the hard way what can be the consequences of failing to faithfully follow the simplified rules for this type of plan.

The materials for this podcast can be found at http://www.edzollars.com/2008-05-26_SEP_Issue.pdf .

I'll be in New Orleans next Monday at the AICPA Spring Tax Division meeting, so the next podcast may come out on a slightly different schedule.

The podcast is sponsored by Leimberg Information Services, located at http://www.leimbergservices.com.