Employee Pension IRA (SEP)
Self-Employed & Small Business Retirement Savings

If you are self-employed or own a small business with less than 10 employees, you may find that a SEP IRA (Simplified Employee Pension IRA) offers an easy-to-maintain way to help build retirement savings for you and your employees.††† As with Traditional IRAs, SEP IRA earnings grow tax-deferred until withdrawal at retirement.1

Once you’ve set up a SEP plan for your business, you can open SEP IRAs for all eligible employees, including yourself.

	Highlights Below > Benefits Your Business Will Receive > Fast Facts > Contributing to Your SEP Plan > IRA Options

Benefits Your Business Will Receive

• Tax-deferred earnings on accumulated interest1
• Contributions are tax deductible to employer2
• Helps attract and retain employees
• Easy to set up and administer
• No extra reporting to IRS is necessary

	Fast Facts
	Contribution Limits2 Employer — $40,000 or 20% of adjusted net profits, whichever is less3 Employee — $40,000 or 25% of employee's net salary, whichever is less3
	Minimum Opening Deposit $100 $25 with payroll deduction

1. Taxes are due on withdrawal at ordinary income tax rates. Withdrawals made before age 59½ may be subject to an additional 10% tax penalty.
2. Some states do not recognize the new contribution limits. Please consult a tax professional for details.
3. Based only on the first $200,000.

Contributing to Your SEP Plan

With the SEP plan, your employees don’t contribute to their own accounts — you make deposits into each eligible employee’s SEP IRA as well as your own. Employees are eligible if they are at least 21 years of age, have worked for you three out of the last five years, and have earned a cumulative wage of a least $450 from you the prior year. You may reduce these qualifications to include more employees in your plan.

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IRA Options

In addition to our non-FDIC-insured retirement IRAs, you may select from FDIC-insured investments.

	Bank IRAs† Offered through American Savings Bank FDIC-insured accounts Fixed Term Available through branches
	Brokerage IRAs††† Offered through UVEST Financial Services Non-FDIC-insured investments, i.e., mutual funds and annuities