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 through our brokerage service allows you to have more control and flexibility with investment choices.

Employer Advantages
  • Separate employer website.
  • American Century Investments® maintains prototype plan and updates it when laws change.
  • Contributions are a deductible business expense.
  • Contributions are discretionary.
  • Little to no annual paperwork.
Eligible Employers
  • Any employer or business structure, including corporations, partnerships and sole proprietors.
  • A self-employed individual who is considered both an employer and an employee of the business.
Investment Choices Choose from over 10,000 mutual funds - both load and no-load - as well as publicly traded stocks and bonds.
Annual Contribution Limits Employer Voluntary-For 2013, up to 25% of compensation or $51,000, whichever is less.1
Employee Contributions are not allowed.
Initial Employee Paperwork
  • Adoption Agreement
  • Brokerage SEP IRA Application
  • Summary Plan Description
Annual Paperwork IRS Form W-2
Deadline for Establishing Plan Employer's tax return filing deadline, usually April 15, plus any extensions.
Annual Fees Each participant pays a $50 annual custodial fee per fund. The fee is waived for Priority Investors if the participant's total investments have a combined value of at least $10,000.
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.
Withdrawals A 10% penalty may apply for withdrawals prior to age 59½.
Secure Online Account Access Participants create a User Name and Password and Log In for secure online account access, to:
  • View account balances
  • Conduct online transactions
  • View tax forms (if available)
  • And more.
Employers can Log In for secure online plan access, to:
  • View plan assets
  • Transmit contributions

1For 2013, contributions may only be based on the first $255,000 of compensation, as adjusted.
2Eligibility requirements may be less restrictive at employer's discretion.

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 not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.

Brokerage Services are provided by American Century Brokerage, a division of American Century Investment Services, Inc., registered broker/dealer, member , .