Simplified Employee Pension (SEP) Plan

A Simplified Employee Pension (SEP) Plan offers self-employed or any size employer a flexible and convenient way to save.

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Low cost; easy set-up and maintenance

Flexible contributions that are a tax deductible expense

No annual IRS filings


Who Contributes1

Employer: Discretionary, up to 25% of compensation up to $61,000*; whichever is less, always 100% vested

Employee: Not allowed

* Limits listed are for 2022. The IRS sets limits annually.


Plan Details

Deadline to establish: Employer's tax deadline plus any extensions

Eligible Employers:

  • Employers of any business type or size
  • Self-employed individuals who are considered both an employer and employee

Participant Custodial Fees: Waived if investments total $10,000 or more; $15 annual per fund if less than $10,000

Support & Guidance

  • Wide range of no-load mutual funds available
  • One-on-one guidance, plus education and tools to help you and your employees plan for retirement
  • Easy online access to track investments and make changes


Compare Plans and Benefits

Establish Plan Now - Employer Checklist

Complete the steps below to establish your plan. Call 1-800-345-3533 if you have questions or need help.

Step 1: Review the SEP Plan Basic Plan Document , and keep a copy for your records.

Step 2: Complete the SEP Plan Adoption Agreement* . Retain the original for your records and return a copy to us to establish your plan.

By Fax: 1-888-327-1997

By Mail:
American Century Investments
PO Box 419385
Kansas City, MO 64141-6385

* Read About the SEP Plan  for information and step-by-step instructions for completing the SEP Plan Adoption Agreement.

Step 3: Complete the SEP Summary for Employees  based on the options you chose in the SEP Plan Adoption Agreement  and provide a copy to all eligible employees along with the SEP Plan Employee Information  sheet.

Step 4: Direct employees to the online SEP IRA Application to open their account.

Step 5: Review our Purchase Guidelines  and submit contributions.

Have Questions or Need Help?

Call us to speak to a Business & Retirement Specialist.

1 Contributions may only be based on the first $305,000 of compensation, as adjusted.

IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.

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.

This information is for educational purposes only and is not intended as a personalized recommendation or fiduciary advice. There are different options available for your retirement plan investments. You should consider all options before making a decision. Our representatives can help you evaluate all of your distribution options.

Diversification does not assure a profit nor does it protect against loss of principal.