What is a SEP IRA?
A Simplified Employee Pension (SEP) plan is a business retirement plan that uses Individual Retirement Accounts (IRAs) as the investment vehicle. An employer contributes money into its employees' Traditional IRAs, the employer gets a tax deduction, and the contribution is not income to the employee until distributed from the IRA.
Since Patelco offers business accounts to sole proprietors only, the employer and employee on the SEP IRA would be the same individual.
Easy to manage
Minimum amount of record keeping required
Self-employed individuals can fully deduct contributions
Higher contribution limits
Lesser of 25% of an eligible employee's compensation or $61,000
No age limit
SEP contributions can be made on behalf of individuals
Later contribution date
May contribute to a SEP up to tax-filing due date, plus extensions
SEP Contributions are reported on the year of receipt regardless of the tax year to which the contributions were made
Frequently Asked Questions
Investment products can also be held in an IRA. We want to help you invest your money wisely. Schedule a complimentary meeting with any of our experienced CUSO Financial Services, L.P. ("CFS") financial advisors.2 We’ll talk with you about your goals and interests, find out where you are financially, and get you started on a path that works for you.
1 Consult tax advisor about IRA tax advantages.
2 Non-deposit investment products and services are offered through CUSO Financial Services, L.P. ("CFS"), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Patelco Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.
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