Simplified Employee Pension (SEP)
Looking for an easy, low-cost retirement plan? Why not consider a SEP?
Merchants State Bank offers SEP plans with no annual cost to the employer or employee. SEPs can provide a significant source of income at retirement by allowing employers to set aside money in retirement accounts for themselves and their employees. Under a SEP, an employer contributes directly to traditional IRAs (SEP-IRAs) for all employees (including the employer). A SEP does not have the start-up and operating costs of a conventional retirement plan and allows for a contribution of up to 25 percent of each employee's pay, subject to annual limits. Other advantages of a SEP include the following benefits:
- Contributions to a SEP are tax deductible, and your business pays no taxes on the earnings.
- You are not locked into making contributions every year. You decide whether and how much to contribute each year.
- Generally, you don't file documents with the government. Merchants State Bank files tax forms for you.
- Sole proprietors, partnerships, and corporations, including S Corporations, can set up SEPs.
Contact Merchants State Bank today to learn more about the tax advantages of SEP plans! See our current rates. Start saving today!

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