Simplified Employee Pension Plans

Start saving with this special Individual Retirement Account

Simplified Employee Pension (SEP) Plans can provide a significant source of income at retirement by allowing employers to set aside money in retirement accounts for themselves and their employees.

Create your retirement savings strategy

Self-employed people find this a good option

Small business owners help themselves and their employees save, too

SEP Plans follow the same investment, distribution, and rollover rules as Traditional IRAs

Is a SEP IRA right for you?

As with any retirement account, consult a trusted professional at Monterra Credit Union, a tax advisor, or an attorney*. They're a great retirement savings option if you're a sole proprietor, freelancer or small business owner.

  • Save up to 25 percent of your net income, up to a yearly limit set by the IRS (for 2023, the limit is $66,000)
  • Contributions are tax-deductible and go into a Traditional IRA under the employee's name*
  • Money is taxed at withdrawal, similar to a Traditional IRA
  • For small businesses, all contributions are made by the employer
  • To be eligible, an employee must be at least 21 years old, have worked for the company during three of the past five years, and received the eligible compensation amount from your business for the year (see for rules and regulations)

* Monterra Credit Union does not provide tax advice. Please consult with your tax or legal advisor to determine how this information may impact your own situation. The information on this site should not be relied upon as investment advice or solicitation. Statements of fact are considered reliable but no representation or warranty is made as to their completeness or accuracy.

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