With a Simplified Employee Pension Individual Retirement Arrangement (SEP IRA) plan, only the employer makes contributions, and with this program in place, the company is required to make contributions for all eligible employees. Your employees are immediately 100% vested, so the money you contribute is theirs right away.
- 100% employer funded
- Contributions are tax deductible
- Earnings grow tax deferred until you make withdrawals
- Employers can contribute up to 25% of the employee’s pay, up to $54,000 per year
- Employees avoid a 10% penalty on funds withdrawn on or after the age of 59 ½
When I first moved to town, I was happy to use ‘the local bank.’ I did chuckle at the ‘My Bank!” slogan…but now I must admit, it has become an accurate descriptor as I now call First United ‘my bank. First United has become a partner in business.