SEP IRA

Retirement for the independently minded

Have more control with a SEP retirement account

A Simplified Employee Pension, or SEP, retirement account lets self-employed individuals and small business owners make tax-deductible contributions to a traditional IRA to grow their retirement savings.

Free if you're eligible

There are no fees to create or manage a SEP IRA if you meet eligibility criteria.

Get tax breaks

Individual contributions are tax-deductible as a business expense.

Save what you can

SEP IRA contribution limits are higher and more flexible than other IRAs.

Find a First Citizens branch , Opens in a new tab

SEP Account Eligibility
Retirement plans for business owners

A SEP retirement account is best for business owners with a few or no employees. You must meet one of the criteria listed in order to qualify for a SEP IRA account.

  • You're the sole proprietor of a business
  • You're a business owner in a partnership
  • You're an individual earning self-employment income

SEP IRA contributions

Contributions can vary from year to year

Your annual SEP IRA contributions can't exceed 25% of compensation, up to $70,000.

Employer contributions

As an employer, you must make your contributions by the business tax filing deadline each year.

Equal contributions

When providing a match to your SEP IRA account, you must contribute the same percentage to all eligible employees.

SEP IRA withdrawals

Minimum required distributions

If you're over age 73, you're required to take a distribution from your SEP account.

Withdraw without penalty

If you're 59 1/2, all withdrawals are permitted penalty-free but will be subject to income taxes.

Penalty for early disbursements

If you make any withdrawals before age 59 1/2 from your SEP IRA account, there's a 10% penalty fee in addition to income taxes.

SEP Retirement Account FAQ
People often ask us

A Simplified Employee Pension, or SEP, IRA is a retirement plan catered toward self-employed individuals and small business owners. It allows employers—including sole proprietors and partnerships—to contribute money to retirement accounts for themselves and their employees.

A SEP IRA is designed specifically for employers and allows for higher annual contribution limits than a traditional 401(k). While both offer tax-deferred growth, only employers can contribute to a SEP IRA for themselves and employees, whereas both employers and individuals can make their own contributions to a traditional 401(k).

Yes. You can contribute to both a 401(k) and a SEP IRA in the same year if you're eligible. However, total contributions must stay within IRS limits, and rules may vary depending on whether you're considered an employee or are self-employed.

Insights
A few retirement insights for your life

Planning

Retirement options for small businesses to offer

What small business owners need to know about retirement plan options.
Having a retirement plan is a benefit that can attract more great employees to your business.
Business Planning

The strategic value of retirement plan benchmarking

Explore key strategies for retirement plan benchmarking to control costs, maintain compliance and boost employee participation.
If you're not benchmarking, you're likely leaving value on the table.
Retirement

Comparing retirement plans for the self-employed

Explore the pros and cons of the five most common retirement plans for the self-employed.
The right option for you will largely depend on your current earnings, how much you want to contribute and whether you have any employees—along with a few other factors.

Links to third-party websites may have a privacy policy different from First Citizens Bank and may provide less security than this website. First Citizens Bank and its affiliates are not responsible for the products, services and content on any third-party website.

Your investments in securities and insurance products and services are not insured by the FDIC or any other federal government agency and may lose value.  They are not deposits or other obligations of, or guaranteed by any bank or bank affiliate and are subject to investment risks, including possible loss of the principal amounts invested. There is no guarantee that a strategy will achieve its objective.

About the Entities, Brands and Services Offered: First Citizens Wealth® (FCW) is a registered trademark of First Citizens BancShares, Inc., a bank holding company. The following affiliates of First Citizens BancShares are the entities through which FCW products are offered. Brokerage products and services are offered through First Citizens Investor Services, Inc. ("FCIS"), a registered broker-dealer, Member FINRA and SIPC. Advisory services are offered through FCIS, First Citizens Asset Management, Inc. and SVB Wealth LLC, all SEC registered investment advisors. Certain brokerage and advisory products and services may not be available from all investment professionals, in all jurisdictions or to all investors. Insurance products and services are offered through FCIS, a licensed insurance agency. Banking, lending, trust products and services, and certain insurance products and services are offered by First-Citizens Bank & Trust Company, Member FDIC and an Equal Housing Lender icon: sys-ehl, and First Citizens Delaware Trust Company.

All loans provided by First-Citizens Bank & Trust Company and Silicon Valley Bank are subject to underwriting, credit and collateral approval. Financing availability may vary by state. Restrictions may apply. All information contained herein is for informational purposes only and no guarantee is expressed or implied. Rates, terms, programs and underwriting policies are subject to change without notice. This is not a commitment to lend. Terms and conditions apply. NMLSR ID 503941

For more information about FCIS, FCAM or SVBW and its investment professionals, visit FirstCitizens.com/Wealth/Disclosures.

See more about First Citizens Investor Services, Inc. and our investment professionals at FINRA BrokerCheck.

Account openings are subject to bank approval.

This material is for informational purposes only and is not intended to be an offer, specific investment strategy, recommendation or solicitation to purchase or sell any security or insurance product, and should not be construed as legal, tax or accounting advice. Please consult with your legal or tax advisor regarding the particular facts and circumstances of your situation prior to making any financial decision. While we believe that the information presented is from reliable sources, we do not represent, warrant or guarantee that it is accurate or complete.

Third parties mentioned are not affiliated with First-Citizens Bank & Trust Company.