Business Savings Accounts

Simplified Employee Pension

A Simplified Employee Pension (SEP) Plan is a retirement plan established by employers, including self-employed individuals (sole proprietorships or partnerships).

The SEP is an IRA-based plan to which employers may make tax-deductible contributions on behalf of eligible employees. The employer is allowed a tax deduction for plan contributions, which are made to each eligible employee’s SEP IRA on a discretionary basis.

Employees do not pay taxes on SEP contributions, but these contributions are taxed when the employee receives a distribution from the SEP IRA.

Please visit the IRS Website for additional details or contact any of our Financial Service Representatives, who will be happy to answer your questions.  Consult your tax advisor for information on which type of IRA is right for you.