Skip to main content

SEP IRA

Simplified Employee Pension (SEP) IRA is offered through CUNA Brokerage Services, Inc.1, a broker/dealer focused on serving credit union members. CUNA Brokerage Services, Inc. is an affiliate of CUNA Mutual Group.

Check the background of our investment professionals on FINRA's BrokerCheck.

CBSI is under contract with the Credit Union to make securities available to Members.

Simplified Employee Pension (SEP) IRA

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 $57,000, whichever is less.2
  • 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.3
  • 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.

Simplified Employee Pension (SEP) IRA is offered through CUNA Brokerage Services, Inc.1, a broker/dealer focused on serving credit union Members. CUNA Brokerage Services, Inc. is an affiliate of CUNA Mutual Group. For more information about CUNA Brokerage Services, Inc., please visit cunabrokerage.com.



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
  1. Financial Professionals are registered representatives of CUNA Brokerage Services, Inc. Representatives are registered, securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, which is not an affiliate of the credit union. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, may lose value, no financial institution guarantee. Not a deposit of any financial institution. CUNA Brokerage Services, Inc. is a registered broker/dealer in all fifty States of the United States of America. FR-3556543.1-0421-0523.
  2. For 2020, this amount is subject to annual cost-of-living adjustments. The IRS announces any increase.
  3. Please consult a qualified tax professional for tax advice on your specific circumstances.

Refer Family or Friends

Invite your immediate family and eligible colleagues to join SchoolsFirst Federal Credit Union!

Not a Member?

Joining SchoolsFirst FCU is quick and easy. Apply for Membership today.