SEP Retirement Accounts
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.
| Title | 2022 | 2023 |
|---|---|---|
| Contribution Limits or 25% of compensation, which is less |
$61,000 | $66,000 |
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.
Account Details:
- Fixed: Fixed interest rate accounts are available where a lump-sum amount is deposited at the time of opening. Minimum deposit is $500.
- Statement: Each account holder is provided with an annual statement.
- 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. Let us show you how to make your life easier with Escrow Manager.