Save for Retirement with the Simplified Employee Pension IRA
Simplified Employee Pension IRA (SEP IRA)
A Simplified Employee Pension IRA (SEP IRA) is the ideal retirement solution for the self-employed. If you're a small business owner or a self-employed contractor or entrepreneur, a SEP IRA will help you save for your future retirement while enjoying tax benefits today.
Am I eligible for an SEP IRA?
You may contribute to an SEP IRA if you are self-employed and have earned compensation. If you'd like more details, see IRS Publication 560 .
|SEP IRA||Traditional IRA||Roth IRA|
|Consider if||You are self-employed or a small business owner||You prefer money to grow tax-deferred until you retire||You would like additional flexibility for withdrawals, or if you plan to work past age 70|
||Tax-free for qualified withdrawals|
|Age Requirements||Employer must contribute for each employee eligible to participate in your SEP, even if they are over age 70 ½
||Contribute until you're 70½||Contribute at any age|
|Mandatory Withdrawals||Age 70 1/2||Age 70 1/2||None|
*Consult a tax professional about your situation.