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Simplified Employee Pension (SEP) IRAs

A Simplified Employee Pension (SEP) IRA offers self-employed Members and small business owners an easy and low-cost plan to save for their own and their employees’ retirement. The SEP IRA offers many of the same tax benefits as profit sharing or a 401(k), but features simpler administration rules. Employers are not required to make contributions in any year or to maintain a certain level of contributions to a SEP-IRA plan. This gives small businesses more flexibility to change their annual contributions based on the performance of the business.

SEP IRA Features
  • Easy to set up, no separate IRS reports
  • Contributions are due by the employer's tax-filing deadline, including extensions
  • 100% portability – if an employee leaves the company they receive all of their retirement funds
Employee Eligibility Requirements
  • 100% of those eligible to participate must do so
  • Must be at least 21 years old
  • Must have received more than $450 in payment during the year
  • Must have worked for the company during the contribution year and 3 of the preceding 5 years
Contribution Limits
  • Up to 25% of the employee’s annual compensation or $40,000, whichever is less*
For more information about SEP IRAs, or to schedule a complimentary consultation with one of our financial advisors, please call 714/258-4000 Monday through Friday, from 9 a.m. to 5 p.m.

*For 2003 and later years, this amount is subject to annual cost-of-living adjustments. The IRS announces the increase.

*Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor. CBSI is under contract with SchoolsFirst Federal Credit Union 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.


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