Employers and Employees Investing Together in a SEP IRA


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


• 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


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


Earnings grow tax-deferred


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


Account Maintenance Fee


Inactivity Fee


Online Trading Commission

Starting at $7 per trade
  Fees & Commissions


Open a SEP IRA