Discover employer-sponsored retirement plans
Geared for small to mid-size businesses, a Simplified Employee Pension (SEP) plan provides business owners with a simplified method to contribute toward their employees’ retirement as well as their own retirement savings.
Not your typical employer-sponsored plan
You may be reluctant to have a retirement plan because of the cost and complexity of typical employer-sponsored plans, but SEP plans are different. Let’s show you how.
Simplified Employee Pension (SEP) Plan:
- Contributions are made to participants’ Traditional IRA
- Employer contributions are deductible by the employer
- Employer contributions are always discretionary
The Internal Revenue Service (IRS) does not allow you to borrow money from your Simplified Employee Pension Individual Retirement Account (SEP IRA) or to use it as loan collateral. However, the IRS permits you to roll money from your SEP IRA into another qualified retirement plan.
SEP stands for Simplified Employee Pension, and this plan is available for employers (including the self-employed). Employers can avoid the complex reporting requirements that the government usually mandates for retirement plans. With a SEP IRA, only the employer makes contributions to the account.
Yes – As long as the SEP IRA plan and the 401(k) plan are offered by separate companies. If you don’t own the company that pays you a W-2, you can participate in both plans.