Global
Advisers

A Simplified Employee Pension Plan (SEP-IRA) is specifically designed for self-employed individuals and small business owners who want to save for retirement without getting involved in complex plan administration. If you are self-employed or have few employees, and if you want flexibility in the amount you contribute annually—particularly if you want to make high contributions—a SEP-IRA might be right for you.

Employer contributions are tax-deductible. Earnings grow tax-deferred and are not taxed until they are withdrawn.

Funded by employer contributions.

Must be made by the employer and can vary each year between 0% and 25% of compensation. Minumum is set by the IRS. See SEP Plans for more information. Each eligible employee must receive the same percentage.

0% early withdrawal penalty (25% for first 2 years of plan participation) if under age 59½, subject to certain exceptions. Required minimum distributions starting at age 72.

There is no cost to opening or closing an account. There is no annual maintenance fee. SEP IRA’s are professionally managed. Global Advisers charges an annual management fee.

Employee notification of employer’s contribution. Employers must fill out and retain Form 5305 SEP (PDF) in their records. No plan tax filings with IRS. Each employee must open an individual SEP IRA account.

SEP IRAs must be established and funded by your tax filing deadline plus applicable extensions.