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 Limits	2012	2013
	$50,000	$51,000

SEP contributions can be made up until your tax filing deadline plus extensions.

IRA & SEP:

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

The First 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 deposit account at The First into the SEP account free of charge (weekly, bi-weekly, monthly, quarterly, semi-annually).
• Unlimited number of sub-accounts
• FDIC insurance up to $250,000 for each individual sub-account
• Interest is paid at the sub-account level

Benefits:

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

For more information, just call or visit any of our 12 branches in Bucks County.
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