Individual Retirement Accounts (IRAs)

It’s a two-way street when it comes to your workforce: your employees work hard in return for steady pay from you. Why not take it a step further and help ensure your valued employees’ futures as well? Our various employer IRA options make it easy!

Even if you’re self-employed, an IRA is a smart option that offers valuable tax benefits.* It’s really a win for both sides — employees get a tax-deferred account that will only grow with time, and employers get to enhance their benefits package with a tax-advantaged* retirement plan. Contact one of our experienced advisors to help you set up a plan — either a SIMPLE IRA or a SEP IRA — that works best for your business.

Summary
  • Help employees save for retirement
  • Competitive interest rates
  • SIMPLE and SEP options available
  • Ideal for self-employed individuals
  • Higher contribution limits than traditional IRAs*
  • Employer contributions are tax deductible*
  • Employee funds are tax deferred*
  • Contributions based on employee's salary
  • Lower administrative cost than other plans
  • Some restrictions apply
  • No setup fees and low maintenance fees
  • Penalty for early withdrawal
  • $100 minimum to open
SIMPLE IRA

A SIMPLE IRA plan is a Savings Incentive Match Plan for Employees. A SIMPLE provides employers a simplified method to make contributions toward their employees’ retirement, as well as their own retirement. Under this plan, employees may choose to make salary reduction contributions and the employer makes matching or non-elective contributions. All contributions are made directly to an IRA set up for each employee (a SIMPLE-IRA).

  • Available to any small business with 100 or fewer employees
  • Gain the respect of your employees
  • Employees have the option to make self-contributions
  • Help employees reach their retirement savings goals
  • Employee always has complete ownership of all SIMPLE IRA money
  • Earns a competitive interest rate
  • Employer must not have any other retirement plan
  • Minimal paperwork necessary; no filing requirements
  • Inexpensive to set up and operate
  • Lower contribution limits than some other retirement options
  • Employees share responsibility of growing their retirement
  • Each year, employer is required to contribute:
  • Matching contribution up to 3% of compensation, or
  • 2% non-elective contribution for each eligible employee
  • $100 minimum deposit to open
SEP IRA

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

  • Ideal for businesses of any size or self-employed individuals
  • Gain the respect of your employees
  • Help employees reach their retirement savings goals
  • Employees always have complete ownership of all SEP IRA money
  • Earn competitive interest on entire balance
  • Contributions are tax deductible; your business pays no taxes on earnings
  • Contributions made only by the employer
  • Only self-employed may make contributions on their own behalf
  • Little to no documents to file with government
  • Inexpensive to set up and operate
  • Flexible annual contributions — good plan if cash flow is unpredictable
  • Can contribute up to 25% of each participant's annual compensation (earned income)
  • Or, up to the maximum allowable limit for current plan year, whichever is less
  • Must contribute equally for all employees
  • Employee must first establish a traditional IRA, in which the employer will deposit SEP contributions
  • $100 minimum deposit to open

*Consult with a tax advisor regarding tax implications.

Please Note: Applicable limits are updated annually in IRS Publication 590, available at www.irs.gov.

A lasting benefit your employees can count on!