Which of the following is a benefit of a SEP plan for employers?

A SEP (Simplified Employee Pension) plan offers significant benefits for employers, one of which is the flexibility in making contributions to employees' retirement plans. This means that employers can decide each year whether to contribute to the SEP and how much to contribute, provided they adhere to the annual limit set by the IRS.

This flexibility allows businesses, especially small ones, to adjust their retirement contributions based on their financial situation. In profitable years, they might choose to contribute the maximum allowed, while in lean years, they have the option to skip contributions entirely without penalty. This is particularly advantageous for companies with fluctuating revenue or those looking to maintain financial flexibility.

Other options might suggest aspects like higher contribution limits or mandatory contributions, but these do not illustrate the same level of adaptability for the employer's financial planning as the ability to vary contributions based on the business's circumstances.