Retired couple having coffee looking at phone.

Business IRAs

IRAs for your employees.

We offer two types of IRAs (Individual Retirement Accounts) that our business customers can offer to their employees as a low cost retirement plan.* 

*We recommend any business owner seek the advice of a tax professional when considering or implementing any retirement plan.
SEP stands for Simplified Employee Pension.  This is a traditional IRA set up and funded by businesses for their employees.  The business gets a tax benefit for their efforts, and the employee gets a supplement to their retirement goals.  Other features include:

  • Annual contribution limits are higher than many other retirement accounts.
  • An employer must contribute equally (as a percent of salary) to all employee accounts, including their own.
  • Contributions each year can vary based on a company's cash flow.
  • Employees are NOT allowed to contribute to the plan, and some tenure and minimum salary levels apply.
  • Sole proprietors are allowed to open an SEP IRA for themselves.
  • Catch-up contributions are not allowed (but with the higher contribution limits, this is almost a non-issue).
SEPs are great for small businesses want to offer a retirement benefit to their employees but wish to avoid the costs of a conventional retirement plan.  SEPs are also a great retirement savings option for self-employed individuals.  
SIMPLE stands for Savings Incentive Match Plan for Employees and is similar to a 401(k).  Employees are allowed to contribute to their account using a salary deferral.  Other features include:

  • Lower contribution limits than for 401(k)s.
  • Employers are typically required to have a 3% matching contribution or a fixed 2% contribution for each eligible employee.
  • Catch-up contributions are allowed.
  • There are minimum tenure and earnings limits for employees.
  • Early withdrawals could be subject to a 25% penalty within the first 2 years of contributing.
A SIMPLE IRA is generally best for small companies with fewer than 100 employees.
Choose from the following IRA time deposits:

3 Months
6 Months
1 Year
18 Months
2 Years
4 Years

The following terms and conditions apply to all our IRA types:

  • Minimum opening deposit of $1,000.
  • An early withdrawal penalty (separate from any federal tax penalty) will be charged for withdrawals made before the stated maturity.