|General Description||Small business owners can make tax-deductible contributions with this flexible plan that is easy to set up and maintain. If you have employees, you may be required to contribute for them as well.|
A Simplified Employee Pension (SEP) plan may work well if you want a low-cost, easy-to-maintain retirement plan for you and your employees. Both SEP IRA and Traditional IRA contributions can be made to the same account, and you have the flexibility to change how much your business contributes from year to year.
|Eligibility to Contribute||You can contribute at any age if you are self-employed or a small business owner.|
|Maximum Annual Contribution|
|Tax-Deductible Contributions||As a small business owner you can deduct your contributions for yourself and your employees from your company's federal taxable income.|
|Taxation of Earnings and Withdrawals||Tax-deductible contributions and earnings are taxed as ordinary income when withdrawn.|
|Types of Investments|
|Minimum Initial Investment||Varies by account from $0 to $100,000|
|Withdrawal Penalties||10% IRS early withdrawal penalty if withdrawn before age 59 ½ unless an exception applies.|
|Required Withdrawals||Must begin at age 70 ½|
|Deadline to Set Up and Fund||You may establish and fund up through the business' tax filing due date plus extensions.|
|Commissions and Fees||Varies by account and investment option|
Learn more about saving for retirement; contact a Wells Fargo financial professional today!
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