Financial Education at your fingertips:

- FREE downloadable "Quick Guides".
- Connect to the people who can help.
- Find just the answers you need with your personalized Financial Checklist.
Simplified Employee Pensions (SEPs) and SIMPLE Plans

Introduction

If you are self-employed and looking for true simplicity, look no further. A Simplified Employee Pension (SEP) is an employer retirement plan that uses IRAs as the funding vehicle. In 2017, you can contribute up to $54,000 ($53,000 in 2016), or 25% of compensation, whichever is less. The actual formula limits your contribution to 20% of your net self-employment income. You can even make your regular IRA contribution to your SEP, in addition to your regular SEP contribution.

SUGGESTION: Your contribution can vary from year to year; you can even skip contributions indefinitely. While this is probably not in your best interest, you also don't have to be bothered with complicated plan documents or annual filing requirements.

 

IMPORTANT NOTE: As in a regular IRA, you can't borrow from a SEP, nor can you use the assets as collateral for a loan. In addition, the rules against putting collectibles in your IRA also apply to SEPs.

Disclaimers:

Not a Deposit.
Not FDIC-Insured.
Not Insured by any Government Agency.
Not Guaranteed by the Bank.
May go Down in Value.

Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA and SIPC. Infinex and BancorpSouth Bank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.


BrokerCheck

You are leaving www.bancorpsouth.com

You have clicked on a link to a third-party website and are leaving the BancorpSouth website. BancorpSouth does not control third-party web sites or the information, products and services offered there. BancorpSouth provides links to such sites only as a convenience and is not responsible for the privacy or security of any third-party website. We encourage you to review the privacy policy and security offered on the third-party website prior to providing any personal information.

× ProceedCancel