Routing # 321076470

Simplified Employee Pension (SEP) IRA

Get tax-deferred savings as a small business owner1

What is a SEP IRA?

A Simplified Employee Pension (SEP) plan is a business retirement plan that uses Individual Retirement Accounts (IRAs) as the investment vehicle. An employer contributes money into its employees’ Traditional IRAs, the employer gets a tax deduction, and the contribution is not income to the employee until distributed from the IRA.

Since Patelco offers business accounts to sole proprietors only, the employer and employee on the SEP IRA would be the same individual.

SEP Benefits

Easy to manage

Minimum amount of record keeping required

Tax benefits

Self-employed individuals can fully deduct contributions

Higher contribution limits

Lesser of 25% of an eligible employee’s compensation or $69,000

No age limit

SEP contributions can be made on behalf of individuals

Later contribution date

May contribute to a SEP up to tax-filing due date, plus extensions


SEP Contributions are reported on the year of receipt regardless of the tax year to which the contributions were made

IRA Calculator

Calculations provided are for demonstration purposes only and do not guarantee credit approval for the rate and terms displayed.

Frequently Asked Questions

    SEP is also a Traditional IRA. It is a business retirement plan that uses Individual Retirement Accounts (IRAs) as the investment vehicle.
    A SEP IRA is subject to different contribution limits than a Traditional IRA.

    Once the employer makes a SEP plan contribution to an IRA, the contribution becomes an IRA asset and is subject to all the regular IRA rules and regulations. There are several other benefits of SEP plans:

    • Total SEP contributions cannot exceed $69,000 for 2024
    • Contributions made by the employer are always 100 percent vested
    • SEP plans may make contributions on behalf of eligible participants at any age starting in 2020
    • Because SEP plan contributions become the employee’s IRA assets, these SEP IRA assets may generally be transferred in the same manner as IRA assets resulting from regular IRA contributions

    SEP IRAs are used by small businesses and self-employed individuals to meet their retirement savings needs It’s a great option for many business owners because it does not come with many of the start-up and operating costs of most conventional employer-sponsored retirement plans. Many employers also set up a SEP IRA to contribute to their own retirement at higher levels than a traditional IRA allows.

    Currently we offer business accounts to small proprietors only. We hope to expand into offering additional small business products and services in the future.

We’ll help you plan for retirement

Investment products can also be held in an IRA. We want to help you invest your money wisely. Schedule a complimentary meeting with any of our experienced CUSO Financial Services, L.P. (“CFS”) financial advisors.2 We’ll talk with you about your goals and interests, find out where you are financially, and get you started on a path that works for you

1 Consult tax advisor about IRA tax advantages.

2 Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Patelco Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.

Financial Advisors are registered to conduct securities business and licensed to conduct insurance business in limited states. Response to, or contact with, residents of other states will be made only upon compliance with applicable licensing and registration requirements. The information in this website is for U.S. residents only and does not constitute an offer to sell, or a solicitation of an offer to purchase brokerage services to persons outside of the United States.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, Certified Financial Planner™ and federally registered CFP (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.


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