Simplified Employee Pension Plan

A Retirement Plan for Small Businesses

A Simplified Employee Pension Plan, or SEP, is an employer-sponsored retirement plan that acts just like a Traditional IRA. It’s perfect for small business owners, as it is a simplified way to make tax-deductible contributions toward their employees’ pension plans. Here are a few more details about this plan:

No fee
Interest-bearing
Contributions may be tax-deductible*
FDIC-insured (within guidelines)
Maximum contribution is 25% of income or $66,000, whichever is less

Employer Benefits

Our SEP Plan is easier retirement savings option to start and maintain for your employees, with lower operating costs and more control over annual contributions. Each employee’s account is called a SEP IRA, and this structure offers employers several advantages.

Contributions

You can decide how much to contribute to the plan, even down to zero. If your income suffers for a year, you can choose to pass on contributing to the SEP. Also, all contributions are tax-deductible.

Tax Credit

When establishing a new SEP plan, you may get a tax credit for the startup costs. The tax credit covers up to $5,000 in expenses for three years.

Employee Satisfaction

Many employees choose employers who offer retirement savings or stick with an existing employer longer if they begin to provide such benefits.

Employee Benefits

This employer-sponsored retirement plan can also help employees save for retirement. One significant benefit is that contributions can be much higher than other IRA types. Here are a few additional employee benefits.

Asset Control

Each employee owns and controls their own SEP IRA, meaning that as an employee, you can receive contributions from your employer and make additional contributions yourself.

Deferred Tax

Since all contributions are pre-tax, employees can place earnings in the IRA without paying income tax. Contributions grow tax-free until you remove them from the account during retirement.

No Taxable Income

The amount employers contribute to a SEP IRA is not included in an employee’s gross income.

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Financial Tools

With MSB Online, you have the tools needed to manage your money all in one place. Whether you want to check your retirement savings, eliminate debt or learn about your cash flow, you can do it all from your phone or computer.

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Our Disclosures

*Consult your tax advisor for more information.

Roth IRA

With post-tax contributions, you can increase your investments tax-free. MSB offers flexible terms, allowing you to choose an account option that fits your life.

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