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 aren't 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 withdrawals before age 59½. Minimum required distributions start at age 70½.
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 aren't allowed
- The IRS requires that contributions to a SEP IRA be reported for the year they're actually deposited to the account, regardless of the year for which they're made
Ready to get started?
Leave us your contact info, and we'll call you back.
Arrange a meeting.
Send certificates and correspondence to:
200 S. College St., 11th Floor
Charlotte, NC 28202
Retirement Planning Considerations for Your Small Business
How do you decide when to invest in your retirement savings over your business? Here are some ways to help you make the best choices about retirement as a business owner.
Tools for Managing Your Small Business
As a business owner, you continually work to improve your offerings, including using advances in technology. Consider how technology can help you manage your business and maximize your success.
Ready to get started?
Not convinced that a SEP IRA is right for you?
Investment solutions are provided by BB&T Investments, a division of BB&T Securities, LLC(opens in a new tab), member FINRA (opens in a new tab)/SIPC (opens in a new tab). BB&T Securities, LLC is a wholly-owned nonbank subsidiary of BB&T Corporation. Securities and insurance products or annuities sold, offered or recommended by BB&T Investments are not a deposit, not FDIC insured, not guaranteed by a bank, not insured by any federal government agency and may lose value.
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.
Only deposit products are FDIC insured.
Traditional banking services are provided by Branch Banking and Trust Company, Member FDIC.