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SCHOOLSFIRST INVESTMENT SERVICES

Simplified Employee Pension (SEP) IRA

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A SEP IRA is for self-employed Members or small business owners. Any business with at least one employee – or anyone receiving freelance income – can have a SEP IRA.

Employers, not employees, make tax-deductible contributions to a SEP IRA, and can decide each year whether and how much to contribute.

A SEP IRA doesn’t come with many of the start-up and operating costs of most conventional employer-sponsored retirement plans. And a key advantage of a SEP IRA over a traditional IRA is its annual contribution limit is significantly higher.

How it works

  • Employers make contributions on behalf of eligible employees to their SEP IRAs.
  • Contributions can be made up to 25% of the employee’s compensation for the year or $61,000, whichever is less.1
  • Employers are not committed to making contributions – decisions about whether to contribute and how much can change each year.
  • When an employer makes contributions, it receives a tax deduction.2
  • Employees who leave the company can transfer their balance to a traditional IRA or another SEP IRA, or roll over the balance to a qualified plan.

How to qualify

  • Be a sole proprietor, partnership or corporation with at least one employee.
  • Employees must be at least 21 years old, have worked for the employer for three of the previous five years, and received at least $600 in compensation during the current year.


LET’S TALK

Would you like to learn more?

Set up a meeting with a financial advisor.1

Call 800.462.8328 ext. 4116, Option 2

Monday through Friday, 8 a.m. - 5 p.m.

Email

Contact us by email at investments@schoolsfirstfcu.org.

Disclosures

Securities are offered through LPL Financial (LPL), a registered broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. SchoolsFirst Federal Credit Union and SchoolsFirst Investment Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using SchoolsFirst Investment Services and may also be employees of SchoolsFirst Federal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, SchoolsFirst Federal Credit Union or SchoolsFirst Investment Services. Securities and insurance offered through LPL or its affiliates are:

Not Insured by NCUA or Any Other Government Agency | Not Credit Union Guaranteed | Not Credit Union Deposits or Obligations | May Lose Value

The LPL Financial registered representatives associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.

1. For 2022, the amount is subject to annual cost-of-living adjustments. The IRS announces any increase. 
2. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.