PFSA now offers SEP-IRAs
A SEP (Simplified Employee Pension Plan) IRA is a retirement plan for self-employed individuals and small business owners with or without employees.
SEP IRAs are quick and easy to set up and administer for your small business.
- Consider a SEP if your business is new or has variable profits.
- All SEP contributions are made by the employer.
- Their employees can continue to contribute to personal Roth or IRA accounts.
- Contributions are deductible as a business expense and not required every year.
FAQs
- What is the Minimum to start?
- $ 100 minimum setup + 10.00 Annual membership fee
- $ 25 per month minimum contribution
- Current Interest 3%
- You can make larger contributions than to a Traditional IRA - 25% of total compensation or $55,000 (whichever is less) for the 2018 tax year
- Contributions are deductible as a business expense and not required every year.
- A SEP-IRA is ideal for self-employed and small-business owners who want to offer a retirement package without assuming the requirements of more complex plans.
- Can I set up a SEP for my self-employment income if I participate in my employer's retirement plan?
- Yes, you can set up a SEP for your self-employed business even if you participate in your employer's retirement plan at a second job.
- SEP IRA plans don't require you to file paperwork with the IRS or the Department of Labor. They also don't require the complicated plan testing found with 401(k) plans.
- Who are good Candidates for a SEP?
- Self Employed individuals, that don’t have a retirement plan in place: Independent contractors, Consultants, Freelancers.
- Small Business Owners: Businesses that are too small to offer a 401(K), Mom and Pop Stores, with or without employees.
- Ranchers and Farmers: Income fluctuates a lot from year to year, some years they might need to increase contributions, in other years they might need to stop contributions
- Gig economy workers: Uber and Lyft Drivers, independent workers that are not considered employees, have no access to any benefits