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Employee Pension IRA (SEP)

Self-Employed & Small Business Retirement Savings Made Simple

If you're self-employed, or if you own a small business with fewer than 10 employees, a SEP IRA (Simplified Employee Pension IRA) may be your best bet. It's an easy way to help build retirement savings for you and your employees^†† and, just like Traditional IRAs, SEP IRA earnings grow tax-free until withdrawal at retirement.

Once you've set up a SEP plan for your business, you can open SEP IRAs for all eligible employees, including yourself.

Open a SEP IRA, and you may benefit from:

• Tax-deferred earnings on accumulated interest
• Contributions are tax deductible for the employer
• Helps attract and retain employees
• Easy to set up and administer
• No extra reporting to IRS is necessary

The details:

Contribution limits for Employers: $40,000 or 20% of adjusted net profits, whichever is less

Contribution limits for Employees: $40,000 or 25% of employee's net salary, whichever is less

• Taxes are due on withdrawal at ordinary income tax rates. Withdrawals made before age 59½ may be subject to an additional 10% tax penalty.
• Some states do not recognize the new contribution limits. Please consult a tax professional for details.
• Based only on the first $200,000.

Contributing to Your SEP Plan

With the SEP plan, your employees don't contribute to their own accounts. Instead, you make deposits into each eligible employee's SEP IRA as well as to your own. Employees are eligible if they are at least 21 years of age, have worked for you three out of the last five years, and have earned a cumulative wage of a least $450 from you during the prior year.

Bank IRAs^†

• Offered through First Commercial Bank, N.A (USA)
• FDIC-insured accounts
• Fixed terms

Brokerage IRAs^††

• Offered through LPL Financial

Non FDIC-insured investments (mutual funds, annuities)