Employers and Employees Investing Together in a SEP IRA

SEP IRAs

If you are self-employed or a small business owner, a SEP IRA (or Simplified Employee Pension) can help you and your employees save tax-deferred for retirement.

SEP IRA Account Features

Eligibility

• Self-employed individuals,
• the sole employee of a small company
• corporations which have 25 employees or fewer

SEP Contributors

Employers contribute on behalf of employees--similar to a 401(k)

Annual Maximum Contribution (2015)

The lesser of 25% of compensation or $53,000
(if you’re self-employed, special rules apply when figuring your maximum deductible contribution)

At Scottrade, your contributions are immediately 100% vested

Investment Options

You have access to a wide variety of investments including stocks, bonds, mutual funds and exchange-traded funds

Employee Eligibility

In order to participate, the employee must:
• Work for the employer at least three of the last five years
• Be at least 21 years of age

 

SEP IRA Tax Advantages

Contributions

Employers are allowed tax deductions on SEP IRA contributions made on behalf of each eligible employee

Earnings  

Earnings grow tax-deferred

Withdrawals

Withdrawals prior to age 59 ½ may incur a 10% IRS penalty as well as income taxes

Withdrawals after age 59 ½ are taxed as ordinary income

 

Transparent Pricing

Account Opening Fee

$0

Account Maintenance Fee

$0

Inactivity Fee

$0

Online Trading Commission

Starting at $7 per trade
  Fees & Commissions

 

Open a SEP IRA

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