Business Banking Products
Contact Our
Business Banking Specialists
Glen Lake:
(952) 935-8663
Country Village:
(952) 935-5995
Contact Our
Business Banking Specialists
Glen Lake:
(952) 935-8663
Country Village:
(952) 935-5995
Simplified Employee Pension (SEP)
The SEP is an IRA that is tax deferred and available for funding by a small business owner in order to provide retirement benefits for both the business owner and his employees. It is a plan that is easy to establish and maintain. Annual contribution limits for tax year 2010 and 2011 are listed below:
For incorporated businesses, compensation is based on W-2 income. Annual contributions can be made to a SEP IRA of each eligible employee up to 25% of W-2 income with a maximum contribution limit of $49,000, whichever is less.
For those taxed as sole proprietors, compensation is based on adjusted earned income determined by completing an IRS worksheet. Annual SEP IRA contributions are limited to 20% of adjusted earned income up to a maximum contribution of $49,000, whichever is less.
As a business owner, you should consult with your tax or legal professional to review the IRS eligibility requirements for this plan.
The IRS publication 560, Retirement Plans for Small Business, found on the IRS web site can provide detailed information about SEP's.
See how much you could save!
Click on the link below to view our current interest rates. Sample our online calculator to determine how much you need to save to reach a certain goal, or if you put a set amount into savings on a consistent basis, to see to what amount that money could grow over time.
The sooner you begin saving for retirement, the more time your money has the potential to grow. It pays to start saving now and to contribute regularly.
