SEP IRA

• Plan description
• Key features
• Who can establish
• Eligible employees
• Annual contributions
• Annual fees

Plan description

A SEP IRA plan (Simplified Employee Pension Plan) is a low-cost retirement plan for small business owners and the self-employed. In a SEP, you set up an IRA for each eligible employee and make tax-deductible contributions into each account. Earnings are tax deferred.

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Key features

• No required IRS filings.
• Each participating employee pays a $10 annual maintenance fee.
• The deduction allowed for employer contributions can save your business money each year by reducing your tax liability.
• You decide amount and frequency of contributions, and you're not required to contribute every year.
• All contributions are 100% immediately vested.
• Employees can create their own portfolios using any of our funds.

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Who can establish

Sole proprietors, partnerships, S-corporations¹, C-corporations¹ and nonprofit groups. Consider an AIM SEP Plan if you are a business owner or self-employed person who wants to:

• Close the gap between Social Security income and retirement expenses.
• Reduce tax bills.
• Have a retirement plan that offers tax-deferred compounding of earnings.
• Attract and retain valuable employees.

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Eligible employees

You are only required to contribute for employees who:

• Are 21 or older.
• Have earned at least the minimum compensation amount for the current plan year.
• Have worked for you for three of the last five years.

You may designate less restrictive requirements at your discretion.

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Annual contributions

Please see Retirement Plan Limits for the current compensation and contribution limits for this plan.

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Annual fees

$10 per account², paid by the employee.

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¹S-corporations and C-corporations are two different types of legal structures, each of which is subject to different tax rules.

²$10 per account is drafted automatically unless otherwise instructed.

This information does not constitute tax advice. Please consult your tax advisor about your particular situation.