Retirement Services

SEP Plans

An ideal pension plan for small organizations, SEP Plans allow your company contributions to be made to eligible employees’ individual retirement account (IRA).

  • Advantages
    • Minimal paperwork and expense
    • Minimal tax filing
  • Eligibility
    • All taxable businesses (sole proprietors, partnerships and corporations) and tax-exempt organizations may establish SEP Plans
    • Any employee who has worked for three out of the past five years and is age 21 or older must be covered; exclusions are permitted for certain employees
  • Maximum total plan contribution that the employer may deduct

    25% participant’s pay or $55,0001, whichever is less2

  • Maximum annual participant deferral (cannot exceed 100% of pay)

    No participant deferral contributions allowed

  • Required employer contribution


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