SEP IRA Plan Details
SEP IRA stands for Simplified Employee Pension Individual Retirement Account. It's a retirement plan commonly used by self-employed individuals or employers who do not have other qualified retirement plans. Opening a SEP IRA allows you to have more control and flexibility with investment choices.
|Annual Contribution Limits||Employer||Voluntary-For 2016, up to 25% of compensation or $53,000, whichever is less.1|
|Employee||Contributions are not allowed.|
|Initial Employee Paperwork||
|Annual Paperwork||IRS Form W-2|
|Deadline for Establishing Plan||Employer's tax return filing deadline, usually April 15, plus any extensions.|
|Eligibility Requirements||Employment in any one, two or three of the preceding five years and is at least age 21.2|
|Maximum Vesting Schedule||Participants are 100% vested at all times.|
|Secure Online Account Access||Participants create a User Name and Password and Log In for secure online account access, to:*
**Online plan access is not available for American Century Brokerage accounts.
1For 2016, contributions may only be based on the first $265,000 of compensation, as adjusted.
2Eligibility requirements may be less restrictive at employer's discretion.
This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.