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What is a SEP IRA?

The Simplified Employee Pension IRA (SEP IRA) is a retirement option designed for small businesses and their employees.
Contributions into a SEP IRA are entirely employer funded, but the employee manages the account and
makes the investment decisions, just as he or she would with a Traditional or Roth IRA.
Contributions as well as investment growth are tax-deferred until the account owner begins taking distributions.
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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.

Neither Foresters Financial nor its affiliates provide legal, tax or estate planning services. Should you require such services, you should consult a legal, tax or estate planning professional.

For more information about mutual funds from Foresters Financial when planning your SEP IRA, you may obtain a free prospectus by downloading it from our website, contacting your Representative, or calling  800 423 4026. You should consider the investment objectives, risks, fees or charges, and expenses of the funds carefully before investing. The prospectus contains this and other information about the funds, and should be read carefully before you invest or send money. An investment in these funds is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

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