SEP-IRA - Comerica

Simplified Employee Pension Plan (SEP-IRA)

A SEP-IRA is an easy way to establish a retirement plan for small business owners, including partnerships, sole proprietors, independent contractors, owner-employees of an unincorporated trade or business, and others.

It’s easily established if you have no other qualified plan in place, allowing you to contribute (within limits) to the IRAs of your firm’s employees. It’s also low-cost and easy to maintain.

You’re building your business. Build your retirement right along with it.

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The Simplified Employee Pension Plan (SEP-IRA) is offered through Comerica Bank or through Comerica Securities.¹

Purpose:

For small business owners or the self-employed with variable earnings, an affordable retirement plan that doesn’t require a lot of time and work

Features:

Easy to establish and maintain
Low-cost
Minimal IRS filings and paperwork
Flexible employer contribution limits
No commitment to contribute for any years in the future
No age limitations as long as income is still being earned

Eligibility Requirements:

Must include all employees who:
- Are at least the age of 21
- Have earned at least $450 in three of the preceding five years
May exclude:
- Union employees
- Certain non-resident aliens (no age requirements)

Contribution Limits:

25% of annual compensation or $46,000 for 2008, whichever is less (based on the first $230,000 of compensation)

Withdrawal Guidelines²:

Minimum distributions of funds are required at age 70 ½
IRS penalty-free withdrawal events include:
- Buying a first home ($10,000 lifetime cap)
- Qualifying expenses: education, medical, health insurance (if unemployed)
- Reaching age 59 ½
- Incurring a disability
- Equal periodic payments for life
- IRS Tax Levy
- Death

Options:

IRA CD—fixed rate
IRA CD—flexible rate
IRA through a brokerage account¹

Related Information

IRA Deposit Options: CDs

DISCLOSURES:

¹Securities offered by Comerica Securities are NOT insured by the FDIC or any government agency; are not deposits or obligations of, or guaranteed by Comerica Bank or any of its affiliates; and may lose value. Comerica Securities, Inc. is a broker/dealer, member FINRA/SIPC and a subsidiary of Comerica Bank.

Comerica Securities does not provide tax advice. Please consult your tax advisor regarding any tax issues.

²All other withdrawals are subject to an IRS early withdrawal penalty. Consult your tax advisor.