Simplified Employee Pension Plan (SEP)
If you are an employer or are self-employed and are looking to establish a business retirement plan that uses Individual Retirement Accounts (IRAs) as the investment vehicle for both you and your employees, a SEP may be the answer.
- Contributions can be made up to 25% of each employee's compensation up to $57,000* for 2020.
- Contributions can be made up to 25% of each employee's compensation up to $58,000* for 2021.
- Interest earned is tax deferred and contributions are tax deductible**
*The maximum amount of compensation or earned income used in determining contributions for any employee is subject to compensation limits set by the IRS. This amount is adjusted in $10,500 increments when the cumulative annual adjustment for inflation produce at least a $10,500 increase.
**Please note that each customer's tax situation may be different. We suggest that you consult your attorney, accountant, financial or tax advisor.
To contact a retirement specialist call 800-657-3272.