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.
- 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 $52,000, whichever is less.
- 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
- 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
*Consult your tax advisor for more information.