SEP IRA Plan

Despite the lengthy name, Simplified Employee Pension (SEP) IRAs have a reputation for being relatively straightforward and inexpensive plans. Because any type or size of business can have a SEP IRA, check out the simplicity and flexibility it can offer. For example:

  • Your annual contributions can exceed the limits of a traditional or Roth IRA. 
  • SEPs are the only plans that can be set up after the end of the year if you don't already have a plan. 
  • SEPs have low account and administration costs.

Contribution features

  • For 2016, you can contribute either 25% of your compensation or $53,000, whichever is less. 
  • Contributions to SEP plans are tax-deductible and grow tax deferred. 
  • Employees who receive contributions are immediately 100% vested.

Deadlines

You must establish and fund your SEP IRA by your business' tax filing deadline, including extensions.

How we can help

The low cost and simplicity of a SEP IRA can be appealing, but how do you know if it's right for you? Ask your financial advisor for more information, and together you'll discover what makes sense for you.

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