Why consider a SEP IRA?
Setting up a SEP IRA offers an employer important benefits. Your company's contributions into a SEP IRA are tax-deductible, and any contributions are made at your discretion from year to year. For 2015, an employer can choose to contribute anywhere from zero dollars up to $53,000 or 25% of an employee's total compensation (whichever is less). This flexibility and simplicity is one of the advantages a SEP offers to small companies.
The SEP IRA can be limited to employees who are age 21 or over, have worked for the employer offering the SEP for the past three out of five years, and earned at least $550 from the employer in each year.
Your Representative can help you decide if a SEP IRA is right for you.
To learn more, read our product brochure about the Simplified Employee Pension.