SEP IRA plan

A SEP IRA Plan could work for your Business.

Simplified Employee Pension (SEP) IRA plans are a way to help your employees get a head start on retirement savings. Eligible employees establish SEP IRA plans, to which tax-deductible contributions are made by the employer. A SEP IRA is a valuable resource that can help you with recruiting and retaining employees.

SEP IRA Plan Features

  • Sole proprietorships, partnerships, limited liability companies (LLCs), or incorporated businesses, including subchapter S corporations, can establish a SEP IRA plan.
  • All eligible employees must be allowed to participate.
  • All plan contributions are 100% vested immediately.
  • The deadline to establish a SEP IRA is the business' tax-filing deadline, including any extensions.
  • Any investment earnings grow tax-deferred until withdrawn.
  • Generally, a 10% tax penalty on distributions applies to participants under age 59½. Participants will have to pay federal income tax on the distributions.


Neither State Farm® nor its agents provide tax or legal advice.

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