SEP-IRA

Simplified Employee Pension Plans (SEP-IRAs) give you and your employees a simple, tax-deferred way to save for the future.

A SEP-IRA offers tax-savings potential as you save for retirement. Call 1-800-831-1344 to get started.

Download the SEP-IRA Employee Guidebook (PDF)
Download the SEP-IRA Employer Plan (PDF)

SEP-IRA Eligibility Rules
Eligible Employer:	Self-employed individuals and business owners who wish to make contributions for themselves and their employees. Employers using leased employees or that have any other retirement plan may not use IRS Form 5305-SEP.
Employer Deductible Limit:	Up to 25% of total compensation* of eligible employees. Contribution percentage is determined by employer each year. Each eligible employee must receive the same percentage of compensation.
Maximum Contribution for Employees:	For 2024, the lesser of $69,000 or 25% of compensation. For 2023, the lesser of $66,000 or 25% of compensation.
Salary Deferrals Allowed:	No.
Employer Fees:	No set-up costs
Annual Participant Account Service Fee:	$20 fee may apply¹
Plan Set-up Deadline:	Your company's tax filing deadline (including extensions)
Reporting Requirements:	No plan tax filing is required, IRA based plan
Investment Options:	Choose from more than 150 no-load mutual funds

SEP-IRA Plan Benefits

Attractive Tax Savings

Save in current taxes per year while you build your retirement savings.
Deduct contributions you make to your SEP-IRA plan account as well as accounts for any employees.

Consider the Example Below:

SEP-IRA benefits
	Without a SEP-IRA Plan	With a SEP-IRA Plan
Net Business Income	$100,000	$100,000
Less: ½ Employment Tax	$7,065	$7,065
Less: Standard Deduction	$29,200	$29,200
Less: Plan Contribution	$0	$18,587
Taxable Income	$63,735	$45,148
Regular Tax Due	$7,184	$4,954
Self-Employment Tax Due	$14,130	$14,130
Total Tax Before Tax Credits	$21,314	$19,083
Tax Savings**	$0	$2,230

Tax-Deferred Growth Potential and Generous Contribution Limits

You can contribute up to $69,000 in 2024 and up to $66,000 in 2023 - a much higher limit than the annual limit for Traditional and Roth IRAs.
Any earnings on your savings are tax-deferred until withdrawn.

Low Costs

No participant fees when you subscribe to paperless delivery.¹
Deduct contributions you make to your SEP-IRA plan account as well as accounts for any employees.

Easy Maintenance, Easy Saving

You make deductible contributions directly to individual retirement accounts (SEP-IRAs) for yourself and your employees.
Participants may rollover or transfer to a T. Rowe Price SEP-IRA.

*Maximum amount of compensation that can be used in determining contribution is $345,000 for tax year 2024 and $330,000 for tax year 2023. This amount is increased periodically for inflation.

**Based on 2024 IRS Tax Tables. This chart represents an unincorporated, self-employed, married individual under age 50 with two dependent children, filing jointly. The individual has net business income of $100,000 and the spouse has no earned income. The chart shows the difference between the tax due if no contributions are made and the tax due if the maximum contribution is made to a SEP-IRA Plan. There is a child tax credit for each child for 2024, subject to phase-out at a higher income level. This calculation has not taken into account the pass-through deduction that may be available. Actual savings will vary depending on your personal circumstances and the availability of the pass-through deduction. Please consult with your tax advisor to discuss your specific situation.

¹An annual $20 account service fee is charged for each mutual fund account with a balance below $10,000. The $20 account service fee will be waived for the following circumstances: Subscribe to electronic delivery of statements and confirmations; maintain an individual combined balance of $50,000 or more for all T. Rowe Price accounts (including mutual funds, Brokerage, and Small Business Retirement Plans); or qualify for the T. Rowe Price Summit Program. Participants can subscribe to paperless delivery via T. Rowe Price Workplace Retirement once their account is established. If the Participant Account is closed during the year, a $20 closeout fee will be deducted automatically from the proceeds of the total redemption. However, the closeout fee is waived when an account service fee was previously assessed to the participant account for that year or when the proceeds are being used for a rollover, transfer or conversion to a T. Rowe Price retirement plan account or T. Rowe Price IRA.

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