Interested in opening an account?

TD Ameritrade has been acquired by Charles Schwab. Now you’ll get access to thinkorswim® trading platforms and robust trading education at Schwab, along with great service, a commitment to low costs, and a wide range of wealth management and investing solutions.

Open an account at Schwab today. You can still open an account at TD Ameritrade and we’ll let you know when your account is ready to be moved in early 2024.

Get in touch Call or visit a branch

Call us: 800-454-9272

175+ Branches Nationwide

SEP IRA

SEP IRA: A flexible and easy to manage retirement plan

A Simplified Employee Pension (SEP) IRA is a retirement plan that allows for higher, tax-deductible contributions, tax-deferred growth, hassle-free account maintenance, and a flexible contribution schedule, making it a good choice for small business owners and self-employed individuals. 

SEP IRA plan details

Best For:
  • Self-employed individuals and small business owners
Tax Benefits:
  • Tax-deductible contributions for the business
  • Tax-deferred growth potential on contributions
Employee Contribution Limits:
  • Not applicable
Employer Contribution Limits:
  • 2022 Tax Year: Lesser of 25% of compensation or $61,000
  • 2023 Tax Year: Lesser of 25% of compensation or $66,000
  • Employer is not locked into making a contribution each year and can decide whether and how much to contribute to employees' accounts (Note: if employers do contribute, must contribute for all participants who are eligible for the plan)
Date Account Must be Opened By:
  • New account must be opened prior to the employer's tax return due date plus extensions (Tax return due date generally: April 15. Extension due date generally: October 15)
Funding Deadline:
  • Account must be funded prior to the employer's tax return due date plus extensions
Employer Administrative Responsibilites:
  • Notification to employees of employer contribution
  • Employer must complete and retain Form 5305-SEP or other plan documents in their records. Employees must receive a signed copy
  • No plan tax filings with the IRS
Withdrawals:
  • If you turned 70 1/2 prior to January 1, 2020: Minimum required distributions start at age 70 1/2
  • If you turn 70 1/2 after January 1, 2020: Minimum required distributions start at age 72
  • 10% early withdrawal penalty if under age 59 1/2 (exceptions may apply)
  • Taxed at ordinary income rate in year withdrawal made

Get in touch Call or visit a branch

Call us: 800-454-9272

175+ Branches Nationwide

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