Simplified Employee Pension (SEP)

A Simplified Employee Pension (SEP) is a tax-deferred retirement plan that is easy to administer and allows employers to make fully discretionary contributions for themselves and their employees.

Account Details

Features and Benefits

  • Employer contributions are deductible as a business expense and not required every year. The employer may increase, decrease, or skip annual contributions as necessary.
  • An easy to set up and maintain retirement plan.

Annual Contribution Limits

Employer Contributions:
  • For 2018, up to 25% of the participant’s compensation or $53,000, whichever is less.
Employee Contributions:
  • For 2018, a personal contribution limit of up to $5,500 (or $6,500 if age 50 or older) into an individual SEP, Traditional, or Roth IRA. (All contributions to the SEP-IRA Plan are made by the employer; however, employees can contribute to their personal IRA accounts.)

Eligibility

  • Generally, employees who are over age 21, earn at least $550 annually, and have worked for the same employer in at least three of the past five years must be allowed to participate.
 

Free Strategy Session

For more information on what a Self-Directed IRA can do for you,
Schedule your FREE 30-Minute IRA Strategy Session Today!

Schedule Today