Simplified Employee Pension Plan (SEP)

A Simplified Employee Pension Plan, or SEP, is an employer-sponsored retirement plan that acts just like a Traditional IRA. It's perfect for small business owners, as it is a simplified way to make tax-deductible contributions toward their employees' pension plans.

Details

• A SEP plan benefits both the employer sponsoring the plan and the employees who share in the plan's contributions. 
• No Fee
• Interest Bearing
• FDIC Insured (within guidelines)
• Contributions may be tax deductible*
• Maximum contribution is 25% of income or $61,000, whichever is less.

Employer Benefits

• SEP plans are easy to administer retirement plans
• Discretionary annual contributions that are tax deductible
• A possible tax credit for startup cost associated with establishing a new SEP plan
• Potentially more satisfied employees because of an increase in their retirement plan savings 

Employee Benefits 

• No current taxable income as a result of an employer's contribution
• Deferral of income tax on earnings in the IRA's
• Control of the retirement assets
• An increase in retirement savings  

Rates Disclosure

*Consult your tax advisor for more information.