A retirement plan solution for self-employed individuals and small business owners.
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.
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:
The employer makes contributions directly to the IRA account of each eligible employee:
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.
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
Manage your individual account online and explore investment insights and market commentary.
Retirement Plan Manager is an online tool that allows sponsors to submit and fund payroll contributions and generate reports.
Speak with a Client Services representative for account assistance, Monday through Friday, from 7:00 a.m. to 6 p.m. CT.
Call us at 800 959 4246
Obtain fund share price, check account balance, and make account transactions 24 hours a day, seven days a week.
Call us at 800 246 5463
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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A target risk fund is a type of asset allocation fund that holds a diversified mix of stocks, bonds, and other investments to create a desired risk profile. The fund manager of a target risk fund is responsible for overseeing all the securities owned within the fund to ensure that the level of risk is not greater or less than the fund’s target risk exposure.
The information provided is general in nature and may not be relied upon nor considered to be the rendering of tax, legal, accounting or professional advice. Readers should consult with their own accountants, lawyers and/or other professionals for advice on their specific circumstances before taking any action.
Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns and does not assure a profit or protect against loss.
All investing involves risk, including risk of loss.
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