Tax Savings Made Easy
Simplified Employee Pension (SEP) IRA

Who

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Eligibility
Any employer with one or more employees can establish and contribute to a SEP plan
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Self-Employment
Self-employed individuals and small business owners with fewer than 100 employees.
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Age
Must be at least 21 years old, have worked for the employer for at least 3 of the last 5 years
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Income
Have earned at least $650 in the current year
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Requirement

Self-Employment
The plan is a type of retirement plan that is available for self-employed individuals and small business owners, including sole proprietors, partnerships, and corporations.
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Eligibility
To be eligible to participate in a SEP plan, you must be at least 21 years old, have worked for the employer for at least three of the past five years, and have earned at least $650 in the current year.
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Annual Contribution Limits
The Employer Contributions of Simplified Employee Pension is employer can contribute up to 25% of the employee's compensation or $61,000 for 2023, whichever is less.
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Employer Contributions
Only employers can contribute to the SEP plan, and contributions must be made to all eligible employees at the same percentage of compensation.
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Tax Treatment
Contributions to a SEP plan are tax-deductible for the employer, and are not subject to income tax until withdrawn by the employee during retirement.
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No Discrimination
SEP plans must meet certain nondiscrimination requirements, meaning that the employer must offer the same plan and contribution rate to all eligible employees.
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The process

  • Initial inquiry
  • Proposal review
  • TransGlobal service agreement
  • Plan setup
  • Plan implementation
  • Plan investments
　　
Initial inquiry

STEP 1

 

 

Client or agent will complete the Pension Inquiry form or website application to provide information to TransGlobal. The information provided allows TransGlobal to generate a proposal with maximum contributions based on independent variables.

 

Start Inquiry 

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Proposal review

STEP 2

 

 

Agent and/or TransGlobal team member presents the proposal to the client to explain each contribution amount. The administration fee structure will also be reviewed here.

 

Start Inquiry 

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TransGlobal service agreement

STEP 3

 

 

Once the client understands the proposal and wishes to proceed to plan setup, the TransGlobal Service Agreement will need to be signed. This form details all direct fees charged to the client and explains TransGlobal's responsibilities as the plan administrator.

 

Start Inquiry 

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Plan setup

STEP 4

 

 

TransGlobal applied for plan documentation on behalf of the client's business. A new EIN number will need to be procured to identify the pension plan trust. The client will need to review and sign the completed SS-4 form provided by TransGlobal prior to submission.

 

Start Inquiry 

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Plan implementation

STEP 5

 

 

Once the plan documents are issued and received by TransGlobal, a TransGlobal team member will meet with the client to discuss the details and structure of the newly established pension trust. The client's signature will be required to approve the plan documents.

 

Start Inquiry 

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Plan investments

STEP 6

 

 

Finally, an account will need to be set up to receive the contributions for the pension plan. The type of account that will be opened may vary due to the client's profile. Due to the limitations of qualified plans, a TransGlobal team member may assist in recommending a suitable account.

 

Start Inquiry 

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Compare all plans for self-employed or small business owner
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