YOU SHOULD KNOW:

  • $100 MINIMUM
    opening deposit
  • $100 MINIMUM
    additional deposit
  • INTEREST PENALTY
    for early withdrawal
  • $25 FEE
    for early closure
Account

SEP IRA

Employer-sponsored IRA.


Maximum Annual Contributions
The lesser of 25% of first $260,000 compensation or $52,000.
Catch-up Contributions
N/A
Tax-Deffered Earnings
Yes
Tax-Deductible Contributions
Employer contribution is tax deductible.
Rollover or Transfer
Yes
Distributions
  • Required minimum distributions at age 70-1/2.
  • 10% penalty tax for early distributions.

Simple IRA

Employer-sponsored IRA. Employer makes salary deferral contributions and employer makes matching contributions.


Maximum Annual Contributions
$12,000 employee salary deferral. Employer matches employee contributions up to 3% of salary.
Catch-up Contributions
Age 50 and over can contribute $2,500
Tax-Deffered Earnings
Yes
Tax-Deductible Contributions
Only employer contribution is tax deductible.
Rollover or Transfer
Yes, but only after 2 years of the initial contribution.
Distributions
  • Required minimum distributions at age 70.5.
  • Early distribution within 2 years of initial contribution subject to 25% penalty tax.
  • Early distribution after 2 years of initial contribution subject to 10% tax.