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  • Any investment earnings grow tax-deferred until withdrawn.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.

Securities are not FDIC insured, are not bank guaranteed and are subject to investment risk, including possible loss of principal.

Securities distributed by State Farm VP Management Corp.

State Farm VP Management Corp. is a separate entity from those State Farm entities which provide banking and insurance products.