Publication 535 |
2001 Tax Year |
Introduction
This chapter discusses retirement plans you can set up and maintain
for yourself and your employees. Retirement plans are savings plans
that offer you tax advantages to set aside money for your own and your
employees' retirement.
In general, a sole proprietor or a partner is treated as an
employee for participating in a retirement plan.
SEP, SIMPLE, and qualified plans offer you and your employees a tax
favored way to save for retirement. You can deduct contributions you
make to the plan for your employees. If you are a sole proprietor, you
can deduct contributions you make to the plan for yourself. You can
also deduct trustees' fees if contributions to the plan do not cover
them. Earnings on the contributions are generally tax free until you
or your employees receive distributions from the plan in later years.
Under certain plans, employees can have you contribute limited
amounts of their before-tax pay to a plan. These amounts (and the
earnings on them) are generally tax free until your employees receive
distributions from the plan in later years.
In general, individuals who are employed or self-employed can also
set up and contribute to individual retirement arrangements (IRAs).
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