Plan description

A SEP IRA plan (Simplified Employee Pension Plan) is a low-cost retirement plan for small business owners and the self-employed. In a SEP, you set up an IRA for each eligible employee and make tax-deductible contributions into each account. Earnings are tax deferred.

Key features

• No required IRS filings.
• Each participating employee pays a $10 annual maintenance fee.
• The deduction allowed for employer contributions can save your business money each year by reducing your tax liability.
• You decide amount and frequency of contributions, and you're not required to contribute every year.
• All contributions are 100% immediately vested.
• Employees can create their own portfolios using any of our funds.

Who can establish

Sole proprietors, partnerships, S-corporations¹, C-corporations¹ and nonprofit groups. Consider an Invesco SEP Plan if you are a business owner or self-employed person who wants to:

• Close the gap between Social Security income and retirement expenses.
• Reduce tax bills.
• Have a retirement plan that offers tax-deferred compounding of earnings.
• Attract and retain valuable employees.

Eligible employees

You are only required to contribute for employees who:

• Are 21 or older.
• Have earned at least the minimum compensation amount for the current plan year.
• Have worked for you for three of the last five years.

You may designate less restrictive requirements at your discretion.

Annual contributions

Please see Retirement Plan Limits for the current compensation and contribution limits for this plan.

Annual fees

$10 per account ², paid by the employee.

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¹ S-corporations and C-corporations are two different types of legal structures, each of which is subject to different tax rules.

² $10 per account is drafted automatically unless otherwise instructed.

This information does not constitute tax advice. Please consult your tax advisor about your particular situation.