Simplified Employee Pensions

Simplified Employee Pensions (SEP accounts) are pension plans established by a business where the employer deposits contributions into an account for the employees of the company and are tax deductible by the employer. Any employer, including a sole proprietor with no employees, can establish a SEP account for their own benefit. The employer elects to pay all employees involved the same percent or the same dollar amount across the board.

Contribution maximum limit per participant is 25% of the employees compensation up to a defined compensation cap, whichever is less.

The dollar contribution limit is $45,000 for 2007 and $46,000 for 2008.

IRA & SEP:

Employees can also contribute their own contributions into a Traditional IRA account even if they are involved in a SEP account.

FNB Accounts:

• Variable: Variable interest rate accounts are available where multiple deposits may be made throughout the year until the goal is met. Minimum deposit is $25.
• Fixed: Fixed interest rate accounts are available where a lump-sum amount is deposited at the time of opening. Minimum deposit is $500.
• Statements: Each account holder is provided with annual and periodic interest statements.
• Fees: We do not charge any service charges or administrative fees.
• Auto Transfer: We offer automatic transfers from the employer's FNB deposit account into the SEP account free of charge (weekly, bi-weekly, monthly, quarterly, semi-annually).
• Unlimited number of sub-accounts
• More than one master account may be opened
• FDIC insurance up to $250,000 for each individual sub-account
• Interest is paid at the sub-account level
• Custom file names for each sub-account using up to 14 characters
  

Benefits:

• Record consolidation
• Reduced administrative burden
• Convenient disbursement procedure
• Established audit trail
• Funds security
  

For more information, just call or visit any First National Bank office.
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