Are the deadlines for establishing a Keogh and Simplified Employee Pension plans the same?
Keogh and simplified employee pension (SEP) plans are both tax-advantaged retirement programs. However, if you want to set up a Keogh and make a contribution to it in the same year, the Keogh must be established by Dec. 31. The deadline to establish a SEP is April 15 of the following year. In other words, you could open a SEP by April 15, 2002, and make a contribution to the plan for the 2001 tax year. So, if you miss the Dec. 31 cutoff for establishing a Keogh, consider opening and contributing to a SEP plan instead. Can I set up either a Keogh or SEP retirement plan even though I also have a salaried job with a big company? Self-employed pension (SEP) plans are tax-advantaged retirement plans and Keogh plans are qualifed plans for sole proprietorships and partnerships. Generally an individual may adopt either plan if he or she has some type of self-employment income. But fortunately, the Internal Revenue Service uses relatively generous rules to determine who qualifies for a Keogh or
