The Simplified Employee Pension (SEP) Individual Retirement Account (IRA) provides self-employed individuals and small-business owners access to tax-deferred retirement savings plans that are easy to implement.
Best if you
- Are a sole proprietor, a business owner in a partnership or self-employed
- Want a simple way to contribute toward your employees' retirement as well as your own
- Prefer flexibility in how much you contribute in a given year
- Would benefit from lower costs for startup and operation of a retirement plan
- Can provide and contribute to SEP IRA accounts for your employees
- The plan is easy and inexpensive to set up and maintain
- Any size business may establish a SEP IRA
- Contributions are tax-deductible for employers
- Earnings grow on a tax-deferred basis
- Contribution limits are much higher than personal IRA accounts
- Employees may also contribute to a Traditional or Roth IRA
- Contributions can be up to 25% of participants’ net income or the designated annual cap, whichever is less
- Employers are not required to make regular contributions, but any contribution must be the same for all eligible employees
- For distributions, participants must be over age 59½, disabled, deceased or a first-time home buyer. There is a 10% penalty for most other withdrawals before age 59½. Minimum required distributions start at age 72.
For your information
It may be helpful to be aware of additional benefits and requirements when deciding if the SEP IRA is right for you.
Did you know?
SEP IRAs have unique features that you won't find in other retirement plans.
- There are generally no annual tax filings.
- Employees are immediately and continuously 100% vested.
- A business may design its own SEP IRA or use the prototype plan available from the IRS.
- Employers may contribute until the business tax filing deadline for the year, including extensions.
When choosing a retirement plan, consider these requirements that are specific for the SEP IRA.
- To be eligible, employees must have worked at least 3 of the past 5 years for the employer.
- Only employers are allowed to make contributions.
- Catch-up contributions to a SEP IRA are not allowed.
- The IRS requires contributions to a SEP IRA to be reported for the year they are actually deposited to the account, regardless of the year for which they are made.
Ready to get started?
Arrange a meeting.
Leave us your contact info, and we'll call you back.
Send certificates and correspondence to:
200 S. College St., 11th Floor
Charlotte, NC 28202
Am I Saving Enough for Retirement? (Calculator)
Find out if you're on track to meet your retirement goals with this handy calculator.
How Often Should I Do a Financial Check-up? (Article)
Know how often you should review your finances to make sure you're on track to reach your goals.
What Mistakes Am I Making With My Money? (Video)
Make sure you're avoiding these pitfalls to create better financial habits.
Ready to get started?
Not convinced that a SEP IRA is right for you?
Traditional banking services are provided by Truist Bank, Member FDIC.
Only deposit products are FDIC insured.
See disclosuresregarding Reg BI practices (opens in a new tab)BB&T Reg BI disclosures relating to BB&T Securities’ Regulation Best Interest (Reg BI) practices.
Investment and Insurance Products:
• Are not FDIC or any other Government Agency Insured • Are Not Bank Guaranteed • May Lose Value
Truist, BB&T®, BB&T Securities®, BB&T Sterling Advisors, Sterling Capital®, BB&T Investments, BB&T Scott & Stringfellow®, SunTrust®, SunTrust PortfolioView, SunTrust Robinson Humphrey®, SunTrust Premier Program®, AMC Pinnacle®, AMC Premier®, Access 3®, Signature Advantage Brokerage, Custom Choice Loan®, SunTrust SummitView® and GFO Advisory Services® are service marks of Truist Financial Corporation. All rights reserved. All other trademarks are the property of their respective owners.
Services provided by the following affiliates of Truist Financial Corporation: Banking products and services, including loans and deposit accounts, are provided by SunTrust Bank and Branch Banking and Trust Company, both now Truist Bank, Member FDIC. Trust and investment management services are provided by SunTrust Bank and Branch Banking and Trust Company, both now Truist Bank, and SunTrust Delaware Trust Company. Securities, brokerage accounts and /or insurance (including annuities) are offered by SunTrust Investment Services, Inc. and BB&T Securities, LLC, and P.J. Robb Variable Corp., which are SEC registered broker-dealers, members FINRA, SIPC, and a licensed insurance agency where applicable. Investment advisory services are offered by SunTrust Advisory Services, Inc., GFO Advisory Services, LLC, BB&T Securities, LLC, Sterling Capital Management, LLC, Precept Advisory Group, LLC, and BB&T Institutional Investment Advisors, Inc., each SEC registered investment advisers. BB&T Sterling Advisors, BB&T Investments and BB&T Scott & Stringfellow are divisions of BB&T Securities, LLC. Mutual fund products are advised by Sterling Capital Management, LLC. Mortgage products and services are offered through SunTrust Mortgage, a tradename for SunTrust Bank now Truist Bank.
The information contained herein is for informational purposes only and does not represent an official statement of your SunTrust Investment Services, Inc. account. Please refer to your monthly or quarterly statements for a complete record of your transactions, holdings, and balances.
"SunTrust Advisors" may be officers and/or associated persons of the following affiliates of Truist Financial Corporation: SunTrust Bank now Truist Bank, our commercial bank, which provides banking, trust and asset management services; SunTrust Investment Services, Inc., a registered broker-dealer, which is a member of FINRA and SIPC, and a licensed insurance agency, and which provides securities, annuities and life insurance products; SunTrust Advisory Services, Inc., a SEC registered investment adviser which provides Investment Advisory services.
SunTrust Private Wealth Management, International Wealth Management, GenSpring, Business Owner Specialty Group, Sports and Entertainment Group, and Legal and Medical Specialty Groups are marketing names used by SunTrust Bank now Truist Bank, SunTrust Investment Services, Inc., and SunTrust Advisory Services, Inc.
SunTrust Robinson Humphrey is the trade name for the corporate and investment banking services of Truist Financial Corporation and its subsidiaries, including SunTrust Robinson Humphrey, Inc., member FINRA and SIPC.
FINRA's BrokerCheck® is a free tool designed to help investors research the professional backgrounds of current and former FINRA-registered brokerage firms and brokers. Investors may access BrokerCheck by: 1. Visiting the BrokerCheck website at brokercheck.finra.org(opens in a new tab), or 2. Calling FINRA's BrokerCheck toll-free hotline at 800-289-9999 Monday through Friday from 8 am to 8 pm ET.
The information provided should not be considered as tax or legal advice. Please consult with your tax advisor and/or attorney regarding your individual circumstances.
Market data information is obtained from third-party sources believed to be reliable, but is provided “as is” with no warranty. Market data is provided for informational purposes only, does not constitute investment advice, and may not be used for trading. Market data is for the individual use of each site guest, and may not be copied, downloaded, stored or redistributed. Quotes are delayed 15 minutes. Some index information is proprietary to the index owner. Data access and usage is subject to the terms and conditions imposed by our third-party sources. Access or use of any data indicates agreement to these terms.
New York City residents: Translation or other language access services may be available. When calling our office regarding collection activity, if you speak a language other than English and need verbal translation services, be sure to inform the representative. A description and translation of commonly-used debt collection terms is available in multiple languages at www.nyc.gov/dca.
Branch Banking and Trust Company is now Truist Bank. Learn more.
BB&T and SunTrust have merged to become Truist. Both institutions will continue to offer independent product lines for a period of time. This may include differing underwriting guidelines, product features, terms, fees and pricing. Our friendly teammates at your local SunTrust branches will be happy to walk you through their respective products. You can also learn more by contacting them at 800-SUNTRUST or SunTrust.com.