SimpIified Employee Pension (SEP) IRAs
Help your employees secure their futures
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:
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Easy to Maintain
Particularly compared to 401k plans, SEP IRAs are straightforward to set up and maintain, without ongoing hassles or headaches.
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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.
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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?
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New business members:
Print and complete the following documentation:
- Business Membership Application & Agreement
- Business Corporate Resolution
- Based on your form of ownership, additional documentation may be required
Contact our Retirement Plans Manager, Frank Sitnik, to schedule a meeting.
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Existing members:
To add a SEP IRA plan, contact our Retirement Plans Manager, Frank Sitnik.
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, Frank Sitnik. Call 978-323-4922 or contact via email.