A Simplified Employee Pension (SEP) is a written arrangement that allows an employer to make deductible contributions for the benefit of participating employees. The contributions are made to individual retirement arrangements (IRAs) set up for participants in the plan.

Highlights Of SEP-IRA

• Any business, whether a "C" Corporation," S" Corporation, partnership, sole proprietorship, self-employed can establish a plan.
• The employer can restrict individuals under 21 years of age, and some part-time workers under a defined salary limit from being eligible for the plan, union workers who have a contract under collective bargaining, and employers can structure the plan to only allow eligibility to those who have worked 3 out of the last 5 years.
• The contributions to each IRA must be allocated in a non-discriminatory manner.
• Contributions to the plan come directly from employer, can vary from year to year and can be discontinued as conditions warrant.
• Contributions are made directly to each individuals IRA.
• Plans may be established and contributions can be made for the prior calendar year up to the employer's due date for tax filing, including extensions.
• If contributions are discontinued for any reason, it must be discontinued for all employees.
• Each individual employee can receive up to 25% of their pre-tax income into the plan up to a maximum of $40,000 per year (this is adjusted annually for inflation).
• Employees are immediately 100% vested with their tax deferred allocation, and when, as and if they leave your employ they simply roll the account in their own individual personal IRA's. (Withdrawal before age 59 1/2 maybe subject to 10% penalty.)
• Employers are not required nor obligated to make any contribution to their employees retirement accounts; however, if the employer voluntarily at their sole discretion elects to contribute for any one employee then they must put in the same percent of income for all eligible employees.
• Loans are not permitted in this type of plan.
• SEP-IRA plans may be discontinued and another type plan substituted.
• This type of retirement plan is the simplest type available for businesses and requires minimal reporting and disclosure.
• IRS approved prototype plans are available and requires no government reporting.
• SEP-IRA plans can readily be moved from one mutual fund custodian, and or variable annuity custodian to another. Deferred sales charges may or may not apply.
• Depending on tax bracket it's possible to have a tax deductible IRA, a non tax deductible ROTH IRA and a tax deductible Sep-IRA.
• Numerous mutual fund and variable annuity investment choices available for these type plans.

Please contact one of United's Banking Center Managers for more information and to open your account today!