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.
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.
Based on your form of ownership, additional documentation may be required
Contact our Retirement Plans Manager, Louise Carvalho, to schedule a meeting.
To add a SEP IRA plan, contact our Retirement Plans Manager, Louise Carvalho.
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)
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