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Category

đŸ˜č
Fun
Transcript
00:00A simple retirement plans came and that's an acronym for something, but simple is sort of
00:05like a watered down version of a 401k plan, which many people are sort of familiar with how that
00:10works. Right. And so effectively the rules are employees can defer money into this plan. And
00:16then the company effectively has to make a 3% contribution to the 3% match to the plan. There's
00:22some other rules and this is not the forum to get into all the details, but you think of it
00:25generically, hey, employees can defer what they want to company. We're not going to put in, you
00:30know, 20% of somebody's salary or 10%. We have to put in 3% and match what they put into it.
00:35Right. And so that, so what's changed between those two is the company contribution is much
00:41smaller generally, right? It's required, you know, as a SEP, you can decide how much you want each
00:47year, but it's a much lower contribution and it puts more power in the employee's hands as far
00:53as far as how much they want to contribute.
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