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.

2015 2016
Contribution Limits

or 25% of compensation, which is less

$53,000 $53,000

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

How to Calculate Required Minimum Distribution

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.
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