M&T Bank : Simplified Employee Pension Plans
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Simplified Employee Pension Plans

Simplified Employee Pension Plans, also known as SEP-IRA plans allow for greater contribution limits than a Traditional IRA. SEP-IRA plans are first established by an employer (possibly yourself) through the execution of a formal written agreement. The employer then makes tax-deductible contributions on behalf of all eligible employees (including yourself) into separate SEP-IRA accounts. Like Traditional IRAs, investment earnings grow tax-deferred until withdrawn.

SEP-IRA Advantages
The key advantage of a SEP-IRA is tax deductibility of employer contribution.

  • 100% Vesting - Any money the employer contributes to a SEP-IRA belongs to the employee immediately
  • Portability - If the employee leaves the company, all retirement contributions go with the employee
  • Plan Simplicity - For the employer, no complicated forms need to be completed and the IRS does not require annual reports to be filed
  • Employee Retention - Offering a retirement plan can make it easier to attract and retain valuable employees

SEP-IRA Contribution Flexibility
SEP contributions are made at the discretion of the employer; each year the employer decides whether or not to make contributions to the plan, as well as the amount to be contributed. Employers must contribute the same percentage of salary/wages to all eligible employees’ SEP-IRAs, including the employer. Furthermore, contributions in excess of applicable limits are subject to a penalty tax on the excess amount contributed.

Contact Us
Learn more about Simplified Employee Pension (SEP) Plans. To speak with an M&T Securities registered representative, contact us online, or stop by any M&T Bank branch today. We can also be reached at 1-800-724-9949.

Investment and Insurance Products: • Are NOT Deposits • Are NOT FDIC-Insured • Are NOT Insured
By Any Federal Government Agency • Have NO Bank Guarantee • May Go Down In Value

Brokerage services and insurance products are offered by M&T Securities, Inc. (member FINRA/SIPC), not by M&T Bank.
M&T Securities, Inc. is licensed as an insurance agent and acts as agent for insurers. Insurance policies are obligations of the insurers that issue the policies. Insurance products may not be available in all states.
The content of this page is for informational purposes only and is not intended to offer any tax, legal or financial advice. Please consult with the professionals of your choice to discuss your situation.
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