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SEP IRA's

Client Centered

Simplified Employee Pension (SEP) plans can provide a significant source of income at retirement by allowing employers to set aside money, tax-deferred, in retirement accounts for themselves and their employees. A SEP does not have the start-up and operating costs of a conventional retirement plan and allows for a contribution of up to 25 percent of each employee's pay.

  • Available to any size business
  • Ideal for self employed and family businesses
  • Easily established by adopting Form 5305-SEP
  • No filing requirement for the employer
  • Only the employer contributes 
  • Employee is always 100% vested

Pros and Cons:
Easy to set up and operate
Low administrative costs
Flexible annual contributions – good plan if cash flow is an issue
Employer must contribute equally for all eligible employees

Who Contributes: Employer contributions only.

Contribution Limits: Total contributions to each employee's SEP-IRA are limited.

Filing Requirements: An employer generally has no filing requirements.

Participant Loans: Not permitted. The assets may not be used as collateral.

In-Service Withdrawals: Yes, but includible in income and subject to a 10% additional tax if under age 59 1/2.