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SEP Individual Retirement Accounts (IRAs)

Offering a retirement plan is easy for you and your employees…

A SEP Plan is available to all types of businesses, including tax-exempt entities and state and local governments, but is ideal for self-employed individuals and small businesses.


Contributions are made to participants’ Traditional IRAs


Employer contributions are deductible by the employer


Employer contributions are always discretionary


As an employer, you may set the following employee eligibility requirements as long as they apply to all employees, including you. (You can also choose to be less restrictive or not apply any restrictions.)

  • Employees must be 21 or older
  • Employees must have worked three of the immediately preceding five years
  • Employees must earn at least $650 in compensation for 2021 and 2022
  • Certain nonresident aliens and union employees may be excluded from this plan


Only employer contributions are allowed in a SEP plan and they must be made on behalf of all eligible employees. The deadline to make – and deduct – contributions each year is your business’s federal tax return due date, including extensions.

The annual contribution limit per employee is the lesser of:

  • 25% of the employee’s compensation (up to a defined compensation cap)
  • $58,000 for 2021 ($61,000 for 2022)
  • 25% of the employee’s compensation (up to a defined compensation cap)
  • $58,000 for 2021 ($61,000 for 2022)

Eric Siljendahl – Business Services Specialist

Meet our Team!

Eric has been in the financial industry for the past 26 years holding many leadership roles including consumer lending, branch management and business banking. He has spent the last five years of his career as an award-winning business banking specialist. He has extensive experience in business loan origination, business development, business deposit products, treasury management, business credit cards and merchant services.

We have a plan to fit your business