A Salary Reduction Simplified Employee Pension IRA is a tax-deferred retirement plan provided by small businesses with fewer than 25 employees. Both the employees and the employer can make contributions to SARSEP IRAs. The contributions are made pre-tax through salary reduction and grow tax-deferred, along with any investment earnings until distribution, usually at the time of retirement.
SARSEP IRAs are subject to the same rules that govern a Traditional IRA.
Is a SARSEP IRA right for you?
No new plans are permitted. An employer would have had to establish a plan prior to December 31, 1996 to be eligible to contribute. However, an employer that already offers the plan may add new employees.
Tax Features and Investments
Withdrawals and Helpful Information
A Janus Henderson Retirement Specialist can answer your questions.
Simplified Employee Pension IRA Account
A Simplified Employee Pension Individual Retirement Account (SEP IRA) is a retirement account designed for small business owners.