SEP IRAs

For employers with a SEP IRA, Byrne Asset can be a resource for investment management and free comprehensive financial planning for you and your staff. If you are an individual with SEP IRA assets from your employer, you can contact us directly.

If you are considering a SEP versus other employer plans, know that SEP IRAs can be appropriate for firms wishing to provide proportionately identical retirement benefits to its employees with contribution limits as high as 401k plans.

Assets are held in separate accounts owned by each participant. Only the employer can make contributions. Once funds are deposited into each participant’s account, the participant is free to invest however desired.

Advantages of SEP IRAs include administrative ease and generous top limits. Disadvantages include lack of ‘catch up’ contributions for employees over 49 and required minimum distributions that begin at age 72 even if the participant is still employed.

Key attributes include:

Employee contributions – Not allowed
Employer contributions – Not required, but when made they must be at the same percentage of salary for each employee, subject to the legal maximums.
Maximum employer contribution – Lower of $66,000 or 25% of compensation
Administration – Practically none

We can help. Contact us anytime.