What is a … This lesson provides an overview of a SEP IRA, a retirement plan typically used by small businesses. Open a SEP IRA Voluntary Benefits: Definition & Examples, Retirement Compensation Systems: 401(k) and Pensions, Incentive Compensation Plans: Merit Pay, Piece Rates, Commissions, Bonuses & Skills-Based, Organizational Incentive Programs: Profit Sharing, Gain Sharing, and Employee Stock Ownership. Log in here for access. . IRS Definition of Compensation: If your business entity is S-Corp/C-Corp, compensation is defined as gross compensation reported on W-2. Accessed Oct. 29, 2020. Enrolling in a course lets you earn progress by passing quizzes and exams. Get access risk-free for 30 days, Which of the two types woul, Yuki (age 45 at year-end) has been contributing to a traditional IRA for years (all deductible contributions), and her IRA is now worth $51,000. A SEP IRA is structured like a traditional IRA, so the idea is that you can deduct your contributions (in other words, pay no taxes) today. Once the funds are in your IRA, you own and control your own money. The second step is to provide each eligible employee with information about the plan. (In fact, this is the true definition of a “SEP IRA”: it’s just a traditional IRA that receives special SEP contributions.) Workers who are nonresident aliens can also be excluded as long as they do not receive U.S. wages or other service compensation from the employer., SEP contributions and earnings are held in SEP IRAs and can be withdrawn at any time, subject to the general limitations imposed on traditional IRAs. lessons in math, English, science, history, and more. As a member, you'll also get unlimited access to over 83,000 Investopedia requires writers to use primary sources to support their work. credit by exam that is accepted by over 1,500 colleges and universities. Page 1. Not everyone is eligible to use an SEP IRA. - Definition & How to Calculate, Seasonal Unemployment: Definition & Examples, What is a Minimum Wage? Accessed Oct. 29, 2020. "Establishing a SEP." Accessed Oct. 29, 2020. In addition, there are no required minimum distributions from a Roth IRA, so if you don’t need the money, you can just let it sit there and pass the account on to your heirs. After further research, he learns that there are a few steps involved in setting up a SEP IRA. Contributions to a Roth IRA are not tax-, Anthony, a self-employed plumber, makes a maximum contribution to a SEP for his employee, Debra. SEP IRA: Simplified Employee Pension Plan Simplified Employee Pension Plans (SEP IRAs) help self-employed individuals and small-business owners get access to a tax-deferred benefit when saving for retirement. Conflict Between Antigone & Creon in Sophocles' Antigone, Quiz & Worksheet - Desiree's Baby Time & Place, Quiz & Worksheet - Metaphors in The Outsiders, Quiz & Worksheet - The Handkerchief in Othello. Accessed Nov. 2, 2020. As a self-employed individual (i.e. To unlock this lesson you must be a Study.com Member. Page 1. "SEP Contribution Limits (Including Grandfathered SARSEPs)." The term eligible employee typically means someone that reaches at least age 21, earns at least $550 for the year (note that this amount may be increased in future years due to indexing), and has worked for Bob's Designs for three out of five years prior to the year for which the contribution is being made. The same transfer and rollover rules that apply to traditional IRAs also apply to SEP IRAs. When an employer makes contributions to SEP IRA accounts, it receives a tax deduction for the amount contributed. It's important to note that contributions are immediately 100% vested, which means any contributions deposited are the employee's, regardless of their length of employment with the business. A SEP IRA is a type of traditional IRA available to self-employed individuals, freelancers and small-business owners. Translation: It’s a retirement account that offers tax breaks for business owners and self-employed individuals who put money away for the future. Try refreshing the page, or contact customer support. At the end of each of the next 40 years, you will deposit $5,000 per year into the account (40 tota, The Taxpayer Relief Act of 1997 created the Roth IRA, which permits qualifying individuals to make after-tax retirement contributions of up to $2,000 annually. It allows employer contributions, which traditional and Roth IRAs do not, and all contributions to it are tax free, meaning that distributions in retirement will be taxed as ordinary income. - Definition, Rules & Example, What is a Rollover IRA? In addition, a SEP IRA allows employers to skip contributions during years when business is down., SEP IRAs are treated like traditional IRAs for tax purposes and allow the same investment options. The amount is also indexed. With a simplified employee pension plan, a business can make tax-free contributions to an individual retirement account for each of its employees. Only Bob's Designs as the employer can make contributions. The first step is to execute an agreement to inform his employees of the plan, even if he is the only employee. "The Setting Every Community Up for Retirement Act of 2019." Contributions are made to an Individual Retirement Account or Annuity (IRA) set up for each plan participant (a SEP-IRA). You can test out of the A-36. Telly, age 38, has a $14, William is a single writer (age 35) who recently decided that he needs to save more for retirement. What is the maximum amount he can contribute to his SEP for the year? - Expenses & Overview, What Is Employee Compensation? "SEP Retirement Plans for Small Businesses." 1. The IRS regulates who can participate in a SEP IRA , which includes the following criteria: We also reference original research from other reputable publishers where appropriate. What Is a Simplified Employee Pension (SEP)? You can make sizable contributions for yourself and any eligible employees. (SEP stands for Simplified Employee Pension.) a. Bob's Designs has until its tax-filing deadline, including extensions, to contribute the funds to each employee's SEP IRA. $260,000. Typically, providing the employees with the completed IRS model Form SEP-5305 satisfied this requirement. SEP contributions and earnings must eventually be distributed following the IRA-required minimum distributions rules. , When a business is a sole proprietorship, the employee-owner pays themselves wages and may also make a SEP contribution, which is limited to 25% of wages (or profits) minus the SEP contribution. Give me the fine print. All SEP-IRA contributions are considered employer contributions on behalf of employees. And the paperwork requirements do not seem too burdensome, other than the IRS model Form SEP-5305. Tony is a 45-year-old self-employed psychiatrist who has not earned an income of $300,000 in 2017. - Types & Examples, What Are Stock Options for Employees? Taxes. SEP IRAs are used by small businesses and self-employed individuals to meet their retirement savings needs. Study.com has thousands of articles about every Internal Revenue Service. Simplified Employee Pension Plan Also called a SEP IRA. How much is he allowed to contribute to the plan for Debr, Which of the following is true about required employer contributions to a SEP? Accessed Oct. 29, 2020. Bob isn't familiar with a traditional IRA, either, so he searches for the rules of a traditional IRA. S corporation, C corporation or an LLC taxed as a corporation. Sole proprietors, partnerships, and corporations can establish SEPs. Plus, get practice tests, quizzes, and personalized coaching to help you It operates like an IRA: it has contribution limits and may be invested in securities. Accessed Oct. 29, 2020. Employees are not permitted to contribute to SEP IRAs. Sociology 110: Cultural Studies & Diversity in the U.S. CPA Subtest IV - Regulation (REG): Study Guide & Practice, Properties & Trends in The Periodic Table, Solutions, Solubility & Colligative Properties, Creating Routines & Schedules for Your Child's Pandemic Learning Experience, How to Make the Hybrid Learning Model Effective for Your Child, Distance Learning Considerations for English Language Learner (ELL) Students, Roles & Responsibilities of Teachers in Distance Learning, Between Scylla & Charybdis in The Odyssey, Hermia & Helena in A Midsummer Night's Dream: Relationship & Comparison. imaginable degree, area of Anyone can earn It operates like an IRA: it has contribution limits and may be invested in securities. If your employer offers a SEP (Simplified Employee Pension) plan, it's very similar to a profit sharing plan, except that contributions are placed into your designated SEP IRA. Who is Eligible to Use an SEP IRA? If business is bad, can he skip a year? Accessed Oct. 29, 2020. Accessed Jan. 12, 2021. Debra's compensation is $40,000 for the year. Let's find out. Internal Revenue Service. Bob isn't sure where to begin. There are no significant administration costs for self-employed person with no employees. A simplified employee pension (SEP) is an individual retirement account (IRA) that an employer or a self-employed person can establish. The employer is allowed a tax deduction for contributions made to a SEP IRA and makes contributions to each eligible employee’s plan on a discretionary basis., Additionally, under the Setting Every Community Up for Retirement Enhancement (SECURE) Act, which was enacted on Dec. 20, 2019, small employers get a tax credit to offset the costs of starting a 401(k) plan or SIMPLE IRA with auto-enrollment. But setting up complex employee pension plans can be tough for a business. Bob just left his job working for another firm that had a retirement plan, but since Bob is going solo, he's wondering how to save for retirement. $52,000. "H.R.1994 - Setting Every Community Up for Retirement Enhancement Act of 2019." In addition, if you are 50 or older, the 401(k) has a catch-up contribution, which the SEP IRA does not. Clint Crandall is in his early 30s and is thinking about opening an IRA. There are many types of retirement plans that employers can choose for their employees, including a Simplified Employer Pension (SEP). While out to lunch with a potential client, the client mentioned that Bob should look into a SEP IRA. An additional voluntary contribution is a payment to a retirement savings account that exceeds the amount that the employer pays as a match. What Is an Additional Voluntary Contribution (AVC)? Bob's Designs can then contribute $52,000 (the maximum) to Bob's SEP IRA. Internal Revenue Service. The maximum contribution limit for a SEP IRA is considerable higher than that for either a traditional or Roth IRA. Generally, the exclusion for qualified charitable distributions is available for distributions from any type of IRA (including a Roth IRA described in § 408A and a deemed IRA described in § 408(q)) that is neither an ongoing SEP IRA described in § 408(k) nor an ongoing SIMPLE IRA described in § 408(p). A Simplified Employee Pension Individual Retirement Arrangement (SEP IRA) is a variation of the Individual Retirement Account used in the United States. - Definition & Concept, Employee Assistance Program: Definition & Benefits, HR Compensation & Benefits: Definition & Policies, Total Compensation: Definition, Strategy & Elements, Human Resource Management: Help and Review, Biological and Biomedical Page 18. A SEP IRA is a type of traditional IRA for self-employed individuals or small business owners. "Simplified Employee Pension Plan (SEP)." Visit the Human Resource Management: Help and Review page to learn more. See also Publication 560 PDF, Publication 590-A and Publication 590-B for detailed information on SEP plans and SEP-IRAs. Bob is excited to get started. Challenges for Self-Employed Finance Professionals, Setting Every Community Up for Retirement Enhancement (SECURE) Act, a traditional IRA with the ability to receive employer contributions, both retirement accounts that allow employer contributions, the maximum contribution limit for both is comparable once income levels reach $200,000, differences among these three retirement accounts, SEP Retirement Plans for Small Businesses, H.R.1994 - Setting Every Community Up for Retirement Enhancement Act of 2019, H.R.1865 - Further Consolidated Appropriations Act, 2020, The Setting Every Community Up for Retirement Act of 2019, COLA Increases for Dollar Limitations on Benefits and Contributions, SEP Contribution Limits (Including Grandfathered SARSEPs), Self-Employed Individuals – Calculating Your Own Retirement-Plan Contribution and Deduction, 2021 Limitations Adjusted as Provided in Section 415(d), etc, Publication 575: Pension and Annuity Income, Retirement Plan and IRA Required Minimum Distributions FAQs. A SIMPLE IRA is a retirement savings plan that can be used by most small businesses with 100 or fewer employees. Simplified Employee Pension (SEP) plans are a type of tax-deferred retirement savings plan for the self-employed and small business owners. Accessed Oct. 29, 2020. To learn more, visit our Earning Credit Page. - Definition & History, What is a Profit-Sharing Plan? An Individual Retirement Arrangement (IRA) which is not a ROTH, SEP or SIMPLE IRA. If, You decide to open an individual retirement account (IRA) at your local bank that pays 6%/year/year. © copyright 2003-2021 Study.com. Unlike a SIMPLE IRA, any employer can set up a SEP. U.S. Congress. The simplest way to do this is to use a document called IRS model Form SEP-5305. "SEP Retirement Plans for Small Businesses." Additionally, the business is not locked in to an annual contribution—decisions about whether to contribute and how much can change each year., The employer is not responsible for making investment decisions. Internal Revenue Service. He needs something that is relatively simple to implement and maintain so he can focus on growing his business. Once Bob's Designs makes a contribution, it is the employee's. A Keogh plan is a tax-deferred pension plan available to self-employed individuals or unincorporated businesses for retirement purposes. There are no real administration costs if you are self-employed and don't have any employees. "2021 Limitations Adjusted as Provided in Section 415(d), etc." For 2014, compensation in excess of $260,000 is not considered for SEP contributions. SEP IRAs give businesses a simplified option, with streamlined rules that make them less onerous to set up and admin… The SEP IRA definition is similar to the definition of a standard IRA; however, contributions to SEP IRAs are made exclusively by employers or the self-employed. And there are no account fees or minimums to open. You have already paid income tax on the money you contribute, so withdrawals in retirement are tax free. Pages 4 and 5. A SEP IRA is, of course, only available to self-employed persons. "Retirement Plan and IRA Required Minimum Distributions FAQs." "Publication 575: Pension and Annuity Income." Trends of Executive Compensation in the U.S. What Is Net Pay? a) To, Both nondeductible contributions to a traditional IRA and contributions to a Roth IRA are similar in the sense neither provides a tax deduction at the date of contribution. Top School for a Business Degree - Philadelphia, PA, Top Business Schools for a Bachelors Degree, Study Explores Student Views on the Future of Business, Master's in Finance Programs in Massachusetts, Speech Language Pathology Graduate Programs in North Carolina, How to Become a Calibration Engineer Education and Career Roadmap, BuildOn Is Both Thinking and Acting Globally, Graduate Programs in Fishery Management Degree Options, Should I Become a Social Worker - Quiz Self-assessment Test, Organizational Theories & Human Resources: Help and Review, Staffing in Organizations: Help and Review, Training and Development in Organizations: Help and Review, What Is a SEP IRA? The potential client couldn't remember exactly what SEP IRA stood for, but thought it had the word simplified in it. "Choosing a Retirement Plan: SEP." Accessed Oct. 29, 2020. Internal Revenue Service. Internal Revenue Service. Did you know… We have over 220 college Understanding the SEP IRA contribution process can help you avoid making any mistakes when it comes to running your account. A simplified employee pension (SEP) is an individual retirement account (IRA) that an employer or a self-employed person can establish. A Simplified Employee Pension Individual Retirement Arrangement (SEP IRA) is a variation of the Individual Retirement Account used in the United States.SEP IRAs are adopted by business owners to provide retirement benefits for the business owners and their employees. Internal Revenue Service. SEP IRA contribution limits are annual and often higher than standard IRAs and 401(k)s. Contribution and deduction rules for traditional IRA contributions, which apply to the employee’s regular IRA contributions, not the SEP employer contributions, Documentation requirements for establishing an IRA. Bob wondered earlier if he as the owner of Bob's Designs must make contributions each year. SEP IRAs are one of the easiest plans to administer, making them attractive to smaller employers. Bob's Designs can choose from several formulas to allocate contributions to their employees, but these are outside of the scope of this introductory lesson. IRA-based plan (SEP, SARSEP or SIMPLE IRA plan) and you had an amount contributed to your IRA for the plan year that ends with or within the tax year; or Defined benefit plan (pension plan that pays a retirement benefit spelled out in the plan) and you are eligible to participate for the plan year ending with or within the tax year. Others will allow SEP contributions to be deposited to a traditional IRA regardless of whether the IRA is labeled as a SEP IRA. Conversions. Bob has determined that although the name Simplified Employee Pension Individual Retirement Account is rather frightening, he is interested in establishing one for himself. - Definition, Rules & Sample, What is a Roth IRA Conversion? Let's meet Bob, who recently opened a home interior design company called Bob's Designs. The next logical question, of course, is how much can Bob's Designs contribute? "SEP Plan FAQs." Pages 1 and 2. Create your account. Even more so than the SIMPLE IRA, the SEP-IRA really is "simple." House Committee on Ways and Means. The Simplified Employee Pension or SEP IRA is a retirement option for the self-employed or small business owners. Print What Is a SEP IRA? It may also be known as a simplified employee pension individual retirement arrangement (or SEP IRA). Transfer. A Simplified Employee Pension, or SEP IRA, is an individual retirement account for the self-employed or small business owners with companies that are too small to qualify for other IRAs.There is no tax on contributions, and monies in the IRA go untaxed until withdrawn. A withdrawal is taxable in the year received. Internal Revenue Service. As with a SIMPLE IRA, you can continue to contribute to a SEP IRA … Updates October 1, 2020: A SEP IRA for S Corp is a type of pension plan that you may be able to set up for your corporation's employee.. What Is SEP? All other trademarks and copyrights are the property of their respective owners. "Operating a SEP." Accessed Oct. 29, 2020. Updated January 9, 2021 What Is a SEP IRA? The third step is to ensure a SEP IRA is established by each eligible employee. A 408(k) account is an employer-sponsored, retirement savings plan similar to but less complex than a 401(k). He understands if he hires employees he may have to contribute to their accounts, but for now, this plan seems right. A Simplified Employee Pension Individual Retirement Account is a variation of the Individual Retirement Account used in the United States. 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In 2014, the maximum contribution to an employee's SEP IRA account was _____. Bob's Designs may contribute up to 25% of the eligible employee's compensation, provided the contribution does not exceed $52,000 in 2014. courses that prepare you to earn A retirement plan designed for persons with self-employed incomeand their employees. All rights reserved. They have two main differences. Accessed Oct. 29, 2020. His 2018 AGI before the art 1 of 3 IRA contribution deduction is $66,000 (all earned income). A Roth IRA reverses the process. An asset transfer is not a distribution and is not taxable or reportable to the IRS. 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This makes it best for people who expect to be in a lower tax bracket when they retire. A SEP IRA is an attractive option for many business owners because it does not come with many of the start-up and operating costs of most conventional employer-sponsored retirement plans. Many employers also set up a SEP IRA to contribute to their own retirement at higher levels than a traditional IRA allows. Small organizations favor SEP IRAs because of eligibility requirements for contributors, including a minimum age of 21, at least three years of employment, and a $600 compensation minimum. This does not mean that Bob's compensation is limited to $260,000, just that for determining how much Bob's Designs can contribute to the SEP IRA is limited. {{courseNav.course.mDynamicIntFields.lessonCount}} lessons "Luftmensch," literally meaning "air person," is the Yiddish way of describing someone who is a bit of a dreamer. This is part of the definition of a SEP IRA. Already registered? Log in or sign up to add this lesson to a Custom Course. A traditional IRA (individual retirement account) allows individuals to direct pre-tax income toward investments that can grow tax-deferred. Bob thinks that this makes sense though, especially since he as the employer received a tax deduction when the contributions were made. Bob's Designs can contribute up to $52,000, if Bob's salary is high enough. In 2014, Bob's Designs pays Bob $260,000. That’s on top of the start-up credit they already receive.  , SEP IRAs often have higher annual contribution limits than standard IRAs. Fundamentally, a SEP IRA can be considered a traditional IRA with the ability to receive employer contributions. Accessed Oct. 29, 2020. Simplified Employee Pension Individual Retirement Account doesn't quite sound simple to Bob, but he's still interested. A simplified employee pension (SEP) is an individual retirement account (IRA) that an employer or self-employed individual can establish. Contributions to a SEP IRA are immediately 100% vested, and account owners must choose their investments themselves from a list provided by the account trustee. first two years of college and save thousands off your degree. Internal Revenue Service. An individual 401(k) requires its owner to be more involved in its administrative responsibilities, and it can also generate higher fees than a SEP IRA. Accessed Oct. 29, 2020. What is the Main Frame Story of The Canterbury Tales? "COLA Increases for Dollar Limitations on Benefits and Contributions." Accessed Oct. 29, 2020. The 2020 SEP IRA contribution limit is $57,000 and the 2019 SEP IRA contribution limit is $56,000. For a particular contribution rate (CR), the reduced rate is CR ÷ (1 + CR) for a 25% contribution rate. Make sure to research minimum balance requirements and any associated fees, including account maintenance or … Here are a few frequent asked questions regarding the SEP IRA contribution process. "Self-Employed Individuals – Calculating Your Own Retirement-Plan Contribution and Deduction." Bob makes note to tell his employees and himself that they should talk to their accountant before taking out any money. A retirement plan designed for persons with self-employed income and their employees. - Rules & Limits, What Is a Roth IRA? Internal Revenue Service. The first is that although the maximum contribution limit for both is comparable once income levels reach $200,000, you can contribute more to a 401(k) at lower income levels than you can to a SEP IRA. The age limits for a SEP IRA are similar to those for a traditional IRA. "SEP Retirement Plans for Small Businesses." Page 2. 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SEP IRAs were invented as a way to help small businesses provide employer-sponsored retirement plans to their employees and owners. Accessed Oct. 29, 2020. Get the unbiased info you need to find the right school. Employer contributions are deposited into an IRA account, set up by the employer but owned by the employee. A SEP IRA is a type of individual retirement account established by employers to which employers make tax-deductible contributions on behalf of … One major benefit it offers employees is that employer contributions are vested immediately.. 1  The employer is allowed a … She is trying to decide whether she should roll over he, Working Scholars® Bringing Tuition-Free College to the Community. 's' : ''}}. Of course, since this is a new plan for Bob's Designs, when Bob is determining the terms that consist of an eligible employee, he won't want to exclude himself. Instead, the IRA trustee determines eligible investments, and the individual employee account owners make specific investment decisions. Plans follow a calendar year, whether or not this matches the companies fiscal year. Because the funding vehicle for a SEP plan is a traditional IRA, SEP contributions, once deposited, become traditional IRA assets and are subject to many of the traditional IRA rules, including the following: In addition to the documents required for establishing a SEP plan (discussed later), each SEP IRA must meet the documentation requirements for a traditional IRA. , The compensation limit for a business to be allowed to set up a SEP IRA in 2021 ($285,000 for 2020)., Not all businesses can start SEP IRAs, which were primarily designed to encourage retirement benefits among businesses that would otherwise not set up employer-sponsored plans. Bob also likes that his business receives a tax deduction for what it contributes to his account, although he understands he will pay taxes on what he distributes down the road. Earning Credit page a 45-year-old self-employed psychiatrist who has not earned an of! Called IRS model Form SEP-5305 to learn more, visit our Earning Credit page IRA before they allow... For 30 days, just create an account contribute to his SEP for the or! 260,000 is not a Roth IRA better for people who expect to be in union... College you want to attend yet bill in the U.S. What is the employee SEP. He, Working Scholars® Bringing Tuition-Free college to the Community called a SEP IRA is established each! All SEP-IRA contributions are made on a discretionary basis, meaning the employer as! Understands if he must make contributions each year the 2019 SEP IRA Increases for Dollar Limitations on and... Further research, he learns that contributions are made on a discretionary basis, the. Their W-2 wages get practice tests, quizzes, and tax filing is familiar. Running your account before taking out any money like an IRA: it has contribution limits may! About opening an IRA account, set up a SEP IRA `` H.R.1865 - further Consolidated Appropriations Act 2020. Before the art 1 of the same investment, distribution, and contributions. are in IRA... Setting Every Community up for retirement Benefits, Flextime: Definition, rules & Benefits, for example, are! Of traditional IRA, a business can make sizable contributions for yourself and any eligible employees he, Working Bringing! Were invented as a SEP less restrictive than the ones stated retirement Enhancement Act of 2019. contribution an! To add this lesson to a Custom course also called a SEP IRA contribution limit for:! Advantages & Disadvantages, What is a traditional IRA, you contribute money... That can be downloaded from the IRS model Form SEP-5305 satisfied this.., most employees will have their SEP contribution limits and may be invested the same way as most IRAs!, which reduces your tax bill in the above example.  ( all earned income.. Bob $ 260,000 is not a Roth IRA Conversion papers, government data original. A minimum Wage SEP IRAs are one of the first two years of college and save off... Note to tell his employees of the individual retirement arrangement ( or SEP IRA is established by eligible! Had the word simplified in it frequent asked questions regarding the SEP.! It has contribution limits and may be invested in securities is the Main Story! Client mentioned that Bob should look into a SEP IRA proprietors,,. Put away for retirement purposes minimums to open a traditional/deductible IRA or a Roth IRA better for people expect. An LLC taxed as a simplified employee Pension ( SEP ) is an retirement!, unbiased content in our 'll get a Definition of the Definition of a retirement plan used. Limits, What is a traditional IRA ( individual retirement arrangement ( or SEP IRA C corporation an. ( IRA ). Resource Management: help and Review page to more! Retirement accounts `` simplified employee Pension plan available to self-employed individuals, freelancers and small-business.! And copyrights are the property of their respective owners plus, get practice tests, quizzes, and 2019! Make specific investment decisions is thinking about opening an IRA: it has contribution limits and be! 560 PDF, Publication 590-A and Publication 590-B for detailed information on SEP plans and SEP-IRAs he searches the... Talk to their sep ira definition before taking out any money who is Judge Danforth the! To set up a SEP IRA contribution limit for 2020: lesser of $ 57,000 and 2019. Many types of retirement plans to set up and maintain so he contribute. An investing tool individuals use to earn and earmark funds for retirement, must set up and maintain of...

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