SEP IRAs (Simplified Employee Pension)

YEAR CONTRIBUTION CONTRIBUTION IF OVER THE AGE OF 50 DEADLINE TO OPEN IRA DEADLINE TO CONTRIBUTE TO IRA
2020 $57,000 Employer’s Tax Filing Deadline  (plus extensions) Employer’s Tax Filing Deadline (plus extensions)
2021 $58,000 Employer’s Tax Filing Deadline (plus extensions) Employer’s Tax Filing Deadline (plus extensions)

Key Features:

  • Easy to set up and operate
  • Low administrative costs
  • Flexible annual contributions
  • Employer must contribute equally for all eligible employees
  • Maximum contribution per participant is the lesser of 25% of the employee’s compensation (20% if self-employed) OR $58,000 for 2021 ($57,000 for 2020)