Simplified Employee Pension (SEP) IRA

A Simplified Employee Pension (SEP) plan provides employers a simplified method to make contributions toward their employees' retirement and their own retirement. Contributions are made directly to an IRA set up for each employee.


  • Tax-deferred account earnings to help your retirement savings grow faster
  • Tax-deductible contributions mean lower annual tax bills
  • Contribution limits currently up to $54,000 or 25 percent of each participant's annual income (whichever is less)*
  • Easy setup and administration
  • Flexible annual contribution requirements-ideal for self-employed individuals and small businesses with variable cash flow


  • You must be an employer of any size business or a self-employed business owner
  • Your business must be a sole proprietorship, corporation or partnership
  • You must complete IRS Form 5305-SEP for setting up a Simplified Employer Pension plan

*Eligibility and contribution amount information is valid as of January 1, 2017.

First American Bank & Trust and its directors, officers, employees (collectively, "First American") are not permitted to give legal or tax advice. While First American can assist clients in the areas of estate and financial planning, only an attorney can draft legal documents, provide legal services and give legal advice. Customers of First American should consult with their legal and tax advisors prior to entering into any financial transaction or estate plan.

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