SEP IRAs
Many of your self-employed clients are looking for a low-cost way to offer retirement benefits to their employees. That means you need to provide them with the tools necessary to secure retirement income that continues to grow. A Simplified Employee Pension Plan, commonly known as a SEP IRA, provides self-employed people and small-business owners a flexible, convenient, and affordable way to contribute to their own, and their employees', retirement savings.
Today's opportunity
With comparatively high contribution limits and minimal administrative costs, a SEP IRA allows self-employed people and small-business owners to make the most of the assets directed toward employee benefits.
Investors who could benefit
- Self-employed individuals and small business owners seeking a simple, inexpensive retirement plan that permits generous contributions.
- Sole proprietors (doctors, lawyers, consultants, accountants, electricians, programmers) and small businesses.
Take advantage: Putnam Small Business SEP IRA
- Higher levels of contributions than Traditional or Roth IRAs — $66,000 or 25% of each employee's compensation for 2023 (20% of compensation if investors are self-employed), whichever is less.
- Plan participants pay no taxes on their contributions, including dividends and capital gains, until they begin withdrawing money.
- The only administrative expense normally associated with a Putnam SEP IRA is a $25 annual maintenance fee paid by each plan participant.
- Investors can choose from a broad range of investment options covering a wide array of investment styles.
- Sponsors and participants receive top-quality service and support from a team of dedicated Putnam representatives.
Resources
| Use | Type |
|---|---|
| Review the features and benefits of the Putnam SEP IRA for plan sponsors and participants. | |
| Download fillable applications and forms for the Putnam SEP IRA. | Web Page |
Withdrawals are subject to income tax, and those made before age 59½ may be subject to an additional 10% tax.