Simplified Employee Pension Plans

  • Print
Simplified Employee Pension Plans

Contribute to your employees' retirement goals and earn their trust and respect. A Simplified Employee Pension plan is for businesses of any size, as well as self-employed individuals.

Employees have the satisfaction of knowing they have complete ownership of their SEP IRA money. It also makes good business sense, as all employer contributions are tax-deductible.


Benefits
  • Ideal for businesses of any size or self-employed individuals
  • Gain the respect of your employees
  • Help them reach their retirement savings goals
  • Employee always has complete ownership of all SEP IRA money
  • Earn competitive interest on entire balance
  • Contributions are tax-deductible (your business pays no taxes on earnings)
  • Contributions made only by the employer
  • Only self-employed may make contributions on their own behalf
  • Little to no documents to file with the government
  • Inexpensive to set up and operate
  • Flexible annual contributions — good plan if cash flow is unpredictable
  • Can contribute up to 25% of each participant's annual compensation (earned income)
  • Or, up to the maximum allowable limit for current plan year, whichever is less*
  • Must contribute equally for all employees
  • Employee must first establish a traditional IRA, in which the employer will deposit SEP contributions
  • $500 minimum deposit to open

Learn more about SEP Plans.


*Consult a tax advisor.