SEP IRAs
If you are self-employed or a small-business owner, a SEP IRA (or Simplified Employee Pension) can help you and your employees save tax-deferred for retirement.
SEP IRA Account Features |
|
Eligibility |
• Self-employed individuals • The sole employee of a small company • Small-business owners |
SEP Contributors
|
Employers contribute on behalf of employees--similar to a 401(k) |
Annual Maximum Contribution (2016) |
The lesser of 25% of compensation or $53,000 At Scottrade, your contributions are immediately 100% vested |
Investment Options
|
You have access to a wide variety of investments including stocks, bonds, mutual funds and exchange-traded funds |
Employee Eligibility |
In order to participate, the employee must: • Have worked for the employer at least three of the last five years • Be at least 21 years of age |
SEP IRA Tax Advantages |
|
Contributions |
Employers are allowed tax deductions on SEP IRA contributions made on behalf of each eligible employee |
Earnings |
Earnings grow tax-deferred |
Withdrawals |
Withdrawals prior to age 59 ½ may incur a 10% IRS penalty as well as income taxes Withdrawals after age 59 ½ are taxed as ordinary income |
Transparent Pricing |
|
Account Opening Fee |
$0 |
Account Maintenance Fee |
$0 |
Inactivity Fee |
$0 |
Online Trading Commission |
Starting at $7 per trade |
| Fees & Commissions | |