To be a competitive employer in a tight labor market, employee benefits are essential. Setting up some type of retirement plan is important if an employer expects to attract and retain valuable people. While many plans can be quite complex and expensive to run, the AllianceBernstein SEP (Simplified Employee Pension) Plan may be just the answer for small to medium-sized businesses.
| Benefits of SEP IRAs |
| Tax-deductible contributions |
Contributions made on behalf of eligible employees are deductible by the company. |
| Tax-deferred earnings |
Earnings on investments will not be taxed until distributed, and earnings can compound on a tax-deferred basis. |
| Maximum contribution limits |
SEP contributions made on behalf of each participant cannot exceed the lesser of 25% of the participant’s compensation or $49,000 for 2010. |
| Complete contribution flexibility |
Each year, the employer determines the amount, if any, to be contributed for that year. |
| Easy to open |
Just fill out an easy-to-complete IRS Form 5305-SEP and give each eligible employee a copy. Eligible employees establish a Traditional IRA account to receive the contributions. Additional statements must be provided to participants as stated in the 5305-SEP Form under “Completing the Agreement” section. |
| Easy to understand |
The regular IRA rules concerning transfers, distributions, rollovers, etc. apply to the employee’s SEP IRA. |
| Employees control their own accounts |
The only decision the employer makes is the amount of the contribution. The employees determine their own investment strategies and how much to take as a distribution. |
| If you are a financial advisor, log on to our advisor site for tools and information on selecting an appropriate retirement solution for your clients. |
An AllianceBernstein SEP IRA Gives You and Your Employees
- Flexibility in investment choices from a wide array of AllianceBernstein mutual funds covering the spectrum of asset classes from conservative fixed income funds through aggressive equity funds, including our Wealth Strategies asset allocation funds and our Retirement Strategies target-date funds
- Account and fund information access via the Internet and telephone
- Customer service representatives available Monday through Friday
from 8:30 a.m. to 7:00 p.m. ET
Which Employers Can Establish a SEP IRA Plan?
Generally, any type of employer, including sole proprietors, partnerships and corporations, can establish a SEP IRA. Certain limitations apply when using IRS form 5305-SEP. Check the form for details.
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