Of the tax-favored retirement plans for the self-employed and small business employee, one is limited to $49,000 of annual contributions per person. It is the ________ plan.

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The SEP-IRA plan allows for annual contributions up to $49,000 or 25% of compensation (whichever is less), making it the best choice out of the options given for maximizing retirement contributions as a self-employed individual or small business employer. The Keogh plan also has a $49,000 annual contribution limit, but may have additional administrative and reporting requirements that make it more costly and complicated to set up and maintain. The SIMPLE plan has a lower annual contribution limit of $13,500, while the 401(k) and thrift plans have higher contribution limits but are typically only available to larger companies with more employees.

Of the Tax-Favored Retirement Plans for the Self-Employed and Small