Employee Pension Plans Made Simple & Affordable

The world of retirement planning can seem daunting when faced with the many options available to business owners today. A SEP (Simplified Employee Pension) requires minimal compliance and documentation when compared to many other pension plans. Let our professional staff of advisors help you decide if a SEP is the right fit for your business.

What Is a SEP?

Similar to other, more complicated retirement options, a SEP (Simplified Employee Pension) offers a way to provide your employees with a tax advantaged savings plan, while minimizing start-up and maintenance costs to you. SEPs offer flexible planning, limited liability, and the option to make employer contributions. Employees get the freedom to direct their investments in individual SEP IRAs, eliminating the challenge of selecting which plans are best to offer.

As a business owner, you can decide each year if you want to contribute or not. If you do, your contributions are tax deductible and your employees are immediately 100% vested; saving you money at tax time while helping you acquire and retain great employees.

What Types Of Companies Can Participate?

  • Sole-proprietorships
  • Partnerships
  • Limited Liability Corporations
  • Select Non-profit Organizations

Advantages of a SEP

One great advantage of a SEP is their relatively simplicity. Since each employee has a separate SEP IRA, there is no requirement to maintain a corporate fund to contribute to the SEP. In addition, there are no annual filing requirements, saving you time and money.

Guidelines for Creating a SEP

Establishing a SEP for your business requires only a few steps. Our professionals will guide you through the process, making it simple to provide this confidence to your employees.

  1. Write a formal agreement to provide the SEP to all eligible employees. This agreement must be established prior to your tax deadline (but includes any approved extensions).
  2. Give any eligible employees details about the SEP plan.
  3. Be sure that a SEP-IRA is created for all eligible employees. Employers can establish an account for employees entitled to contributions that are unwilling, or unable, to establish an account on their own.

The IRS requires an employee to be eligible to participate in a SEP if they are: 21 years of age, have worked three of the previous five years for the employer, and earned a minimum of $600 per year. An employer may reduce the eligibility requirements as they see fit, but may never further restrict participation.

Why Let Us Operate and Maintain Your SEP?

As an employer, you want to care for your staff, but your efforts are best spent working towards the goals of your business. Our team of financial professionals will work for you, ensuring your employees’ retirement plans are well managed so they can worry less about the future, and more about helping you grow your business.