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SEP IRA

The SEP IRA is an easy-to-administer retirement plan for small business owners and their employees.

Features and benefits

  • Simple to set up and maintain
  • Low start-up costs
  • No IRS filing
  • Contributions deductible to employer (up to legal limits)
  • Contributions and any earnings are tax deferred until withdrawn.
  • Employer is not required to make contributions every year.

Key MFS advantages

  • More than 80 mutual funds to choose from, including risk/reward based asset allocation funds and target date funds based on asset allocation strategies
  • Global asset management expertise of MFS
  • Account and fund information access via the Internet and telephone
  • Customer service representatives available from 8 a.m. to 7 p.m. ET, Monday through Friday

Eligibility

  • Small-business owners who wish to contribute for employees
  • Sole proprietors
  • Employers who currently don’t maintain any other qualified retirement plan (other than another SEP IRA)

Contribution limits

  • Company may contribute up to 25% of compensation or $51,000 for 2013; $52,000 for 2014, whichever is less.
  • Compensation limit is 20% for sole proprietors.
  • Plan must be set up and funded by the employer’s tax-filing deadline (including extensions).

MFS does not provide legal, tax or accounting advice. Any statement contained in this communication (including any attachments) concerning U.S. tax matters, was not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code. This communication was written to support the promotion or marketing of the transaction(s) or matter(s) addressed. Clients of MFS should obtain their own independent tax and legal advice based on their particular circumstances.

Keep in mind that all investments, including mutual funds, carry a certain amount of risk including the possible loss of the principal amount invested.

You should recommend products based on your client's financial needs, goals, and risk tolerance.

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