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SimpIified Employee Pension (SEP) IRAs

Help your employees secure their futures

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A SEP IRA, established by an employer for themselves and their employees, can be a significant source of retirement income. It follows the same investment, distribution and rollover rules as a Traditional IRA, but offers a few distinct advantages:

  • Easy to Maintain

    Particularly compared to 401k plans, SEP IRAs are straightforward to set up and maintain, without ongoing hassles or headaches.

  • Generous Contribution Limits

    Contributions made are based on $290,000.00 of compensation for tax year 2021. Contributions are limited to the lesser of $58,000.00 or 25% of compensation for tax year 2021.

  • Flexibility

    SEP IRAs allow business owners to adjust contributions and employee requirements as needed. Please consult a tax adviser to determine how Federal, State and Local tax laws affect your deductibility.

How Do I Open A SEP IRA?

No, the employer must contribute a uniform percentage of pay for each eligible employee, including themselves (i.e., if the employer wants to contribute 15% of his pay, he must contribute 15% of all eligible employees pay).

There are three kinds of SEPs available to business members, which can be in the form of:

  • a Retirement Statement Savings account (with a variable rate of interest)
  • an IRA Money Market account (with a variable rate of interest)
  • an IRA CD (terms varying from 6 months to 42 months)

Get started

Contact our Retirement Plans Manager, Louise Carvalho. Call 978-323-4922 or contact via email.

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