Simplified Employee Pension (SEP) Plans
A simplified employee pension from Consumers National Bank is a traditional Individual Retirement Account (IRA) that gives employees a nest egg while employers make tax-deductible contributions.
Quick Facts about SEP Plans:
- No minimum deposit to open
- Suitable for most small businesses, including sole proprietorships, non-profits,partnerships, or corporations
- A flexible program with adjustable contributions on behalf of team members, enabling employers to contribute generously during prosperous years and reduce if business slows
- Eligible employers pay no taxes on earnings and may qualify for a tax credit on start-up costs for the first 3 years of the plan
- Business owners (sole proprietors) can contribute to their accounts
- Minimal maintenance with little government documentation and low initial costs
- Competitive rates of return
- Employees have a range of investment choices and can transfer or roll funds from other accounts
- Employee tax on employer contributions deferred until distributions occur in retirement
Help your team with their long-term goals by starting a simplified employee pension plan today with Consumers National Bank. Our team is here to answer your questions and collaborate on a program that aligns with your business model.