RETIREMENT PLANS SEP IRA

A retirement plan solution for self-employed individuals and small business owners.
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Why partner with us Explore SEP IRA options with Invesco

A SEP IRA is an inexpensive and easy-to-manage retirement solution for employers to add to an employee’s benefits package. This employer-funded plan has high contribution levels and is available to any business regardless of size or type. Partner with Invesco for resources and support to help plan participants get more out of retirement.

Partnership

As a leading independent global investment management firm, investors may benefit from our commitment to investment excellence, depth of investment capabilities, and organizational strength.

Management

Maximize your retirement by working with your financial professional to create an asset allocation that aligns with your investment and risk objectives.

Allocation

Explore our mutual fund offerings, which span every major asset class, including US and international equity and fixed income portfolios and target-risk funds.

What we offer SEP IRA plan features

With a higher contribution level and more flexibility, the SEP IRA might be the retirement plan that can best suit self-employed workers.

Employers must meet the same eligibility requirements as their employees. Employers are required to include employees who:

  • Are 21 years old or older.
  • Have been employed by the employer for three of the last five years.
  • Earned at least $750 (may be adjusted annually for inflation) for the current year.

The employer makes contributions directly to the IRA account of each eligible employee:

  • The overall maximum contribution per eligible employee is the lesser of 25% of compensation or $70,000, based on the first $350,000 of compensation (for 2025 and indexed for inflation).
  • Employers decide each year how much they want to contribute, if at all. Contributions to participant accounts must be nondiscriminatory. The same percentage must be allocated to each eligible participant.
  • Employer matching or nonelective contributions must be made by the company’s tax filing deadline (including extensions).
  • Employees are not eligible to make salary deferral contributions.

Participant SEP IRA accounts are subject to the rules that govern regular IRA withdrawals and distributions.

Penalty-free rollovers are permitted in and out of the plan.

  • Testing requirements — A “top-heavy” test must be performed to determine if the plan disproportionately benefits certain “key employees.” If the plan is top-heavy, the employer may have to contribute as much as 3% of annual compensation on behalf of all eligible workers who are not considered key employees.
  • Filing requirements — SEP IRAs don’t require government filing, and there is no annual IRS reporting.

Any business size and type are ideal.

Set up a SEP plan as late as the tax filing deadline (including extensions) of the employer's income tax return for that year.

The plan participant pays an annual retirement account maintenance fee of $25 for balances under $50,000. The fee is waived for balances of $50,000 and over.1

Account access and support

Key information about SEP IRAs

A Simplified Employee Pension (SEP) is a retirement plan the employer establishes and makes contributions on its employees’ behalf. With this type of retirement plan, the employer must contribute equally for all eligible employees into their individual retirement account (IRA).

A key difference between an IRA and a SEP IRA is who contributes to the account. A traditional IRA is funded by contributions made by the IRA owner and doesn't allow the employer to make contributions. In a SEP IRA, the employer makes discretionary contributions and deposits those employer contributions on behalf of eligible employees. A SEP IRA can also accept traditional IRA contributions funded by the employee.

Virtually all types of employers of any size may establish a SEP IRA plan, including sole proprietors, corporations, partnerships, tax-exempt organizations, and governmental entities.

Yes, the employee can contribute to both a SEP IRA and a Roth IRA. A SEP IRA can also accept traditional IRA contributions funded by the employee. To make Roth IRA contributions, the employee would need to establish a separate Roth IRA. As a reminder, any contributions made to an IRA (traditional or Roth) must be aggregated to ensure they don’t exceed the maximum IRA contribution limit for the year.

The employee can contribute to a SEP IRA by making traditional IRA contributions without opening a new traditional IRA account. The employee's contributions must be within the annual IRA limits. These contributions in the SEP IRA are separate from the employer contributions. Contributions can be sent via check or ACH.  Please contact Client Services at 800 959 4246 for additional details.

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Other retirement plans

Explore our other retirement plans designed to help you get more out of retirement.

  • 1

    The annual fee is waived across all retirement account types if total assets held by the participant in any retirement or non-retirement accounts held directly at Invesco, excluding 529 plans, are $50,000 or greater on the date that fees are assessed. Fund expenses apply.
  • 2

    Nonresident aliens and employees subject to collective bargaining agreements may be excluded. You may designate less restrictive requirements based on age or service at your discretion.