• The Saturna Advantage
• Retirement Calculators
• Individual Retirement Accounts
• Traditional IRA
• Roth IRA
• Converting To A Roth IRA
• 401(k) Plans
• Account Login
• General Guidelines
• Plan Services
• Fee Schedule
• Setting Up Your 401(k)
• Employer Plans
• SEP IRAs
• SIMPLE IRAs
• Rollovers & Transfers
• Withdrawal Exemptions
• Prohibited Transactions

Employer Plans Brochures & Forms:

• SEP/SIMPLE Brochure
• SEP IRA Application
• SEP Contribution Form
• SIMPLE IRA Application
• Employer Plans Transfer Form
• IRA Distribution Form

SEP IRAs

Simplified Employee Pension Plan

A Simplified Employee Pension Plan, commonly known as a SEP-IRA, is a retirement plan specifically designed for self-employed people and small-business owners. Its key features are highlighted below. When establishing a SEP-IRA plan for your business, you and any eligible employees establish your own separate SEP-IRA; employer contributions are then made into each eligible employee's SEP-IRA.

Plan Eligibility

You can establish a SEP-IRA if you:

• are a sole proprietor, in a partnership, or a business owner (of either an unincorporated or incorporated business, including Subchapter S corporations);
• earn more than $550 of self-employed income by providing a service, either full-time or part-time, even if you are already covered by a retirement plan at your full-time job.

Tax advantages

Tax-deductible contributions

• Up to 25% of compensation, as much as $49,000 for 2010.¹

Tax-deferred growth potential

• Any investment earnings grow tax-deferred until withdrawn.

SEP-IRA Deadline

The deadline to open and contribute to a SEP-IRA is your tax filing deadline (including any extensions). For most self-employed individuals and small-business owners, that deadline is usually April 15.

Contribution Flexibility

No annual contribution required

• Contribution percentage can vary each year, from 0% - 25% of compensation (maximum contribution is $49,000 per participant for the 2010 plan year).
• All SEP-IRA contributions must be made by the employer, and the same percentage of compensation must be contributed for each eligible employee (based on W-2 wages) including the employer.

Other Key Advantages

• No complicated forms to fill out.
• No annual reports for you to file with the IRS.
• Contributions are not mandatory each year.
• Ability to offer another qualified retirement plan in addition to the SEP-IRA.

¹ The maximum compensation on which contributions can be based is and $245,000 for 2010. For self-employed individuals, compensation means earned income.