SEP-IRA

Type of Business

¨     Self-employed individuals, business owners or earns self employed income

¨     Employer avoids costly administration

¨     Flexible annual contributions

Features and Advantages

¨     Employer makes discretionary contributions each year

¨     Employees control investments

¨     No plan administration required

Administration

Minimal testing, no reporting

Establishment

Up until tax filing due date

Eligibility

Full-time employees age 21 and over with one year of service

Vesting

100% Immediate

Annual Compensation Limit

$200,000

Maximum Employee Contributions

Not permitted

Maximum Employer Contributions

¨     Cannot exceed 15% of compensation, or $30,000 per participant                                                                                                                                                                           

¨     Limited to $25,500 based on annual compensation limit

Mandatory Minimum Distributions

¨     Begin by age 70 ½

¨     Taxed as ordinary income

Distributions Before Age 59 1/2

10 % penalty in addition to ordinary income taxes for distributions (Exceptions may apply)

Distributions After Age 59 1/2

¨     Subject to ordinary                                                                                                 income taxes

Loans

Not permitted