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.
current offerings and terms
Choose from the following IRA time deposits:
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.