Self-Employed? A SEP is your Retirement Solution
An Alliant SEP IRA, or Simplified Employee Pension Plan, allows self-employed individuals or small business owners to:
- 0.80% APY
- Make contributions with higher limits than an IRA
- Get tax-deferred earnings until age 70½ when all withdrawals are subject to taxes
- Make contributions that are deductible
- Lower your income tax liability in the current year
Some facts about SEP IRAs:
- If you are self-employed or a small business owner, this is a smart retirement savings plan for you.
- SEP-IRA funds are taxed at ordinary income tax rates when qualified withdrawals are taken after age 59½ (the same rule as for traditional IRAs).
- Since SEP accounts are treated as IRAs, funds can be invested the same way as any other IRA.
APY = Annual Percentage Yield. View Disclosures
Effective April 1, 2006 the National Credit Union Administration (NCUA) increased the share insurance to $250,000 on retirement accounts such as Traditional and Roth Individual Retirement Accounts (IRAs) and SEP IRA accounts.
This change provides greater protection and peace of mind for you, as you save for your retirement. For more information, visit www.ncua.gov.
Please note that retirement accounts are insured separately from other types of share accounts, such as savings and checking accounts.
Frequently Asked Questions
Where do I send checks for deposit to my Alliant IRA Account?
Alliant Credit Union
Attn: IRA/HSA Dept.
P.O. Box 66945
Chicago, IL 60666-0945
Alliant Credit Union
Attn: IRA/HSA Dept.
11545 W. Touhy Avenue
Chicago, IL 60666
Who qualifies for a SEP IRA?
The SEP IRA is a retirement plan designed to benefit self employed individuals and small business owners. Sole proprietorships, S and C corporations, partnerships and LLCs qualify.
What are the benefits of a SEP IRA?
A big benefit is the tax-deferred features. Interest earned in a SEP IRA grows tax-deferred, which means dividends and investment earnings continue to grow without being taxed until you withdraw the assets. Withdrawals after age 59½ are taxed as ordinary income. Withdrawals prior to age 59½ may incur a 10% IRS penalty, as well as income taxes. At age 70½ Mandatory Required Distributions are required.
Am I required to make contributions to my SEP IRA every year, or for a specific amount?
Contributions into a SEP are completely at your discretion. The percentage of contribution can vary year to year, or it can be stopped, depending on profitability or short-term financial challenges. Of course, as with any retirement savings, we recommend a regular and consistent schedule of contributions.
Can I rollover my traditional or Roth IRA into a SEP IRA?
Retirement plans can be rolled over and consolidated into a SEP. This includes Traditional IRAs, 401k Plans, Money Purchase Plans, Profit Sharing Plans, Defined Benefit Plans, 403b Plans and Rollover IRAs. A Roth IRA or retirement accounts with after-tax contributions cannot be rolled over into a SEP IRA.
How do I know which IRA is right for me?
Everyone has different concerns when it comes to their hard earned money. You might be looking for a conservative approach, one with growth potential or a combination of the two. Alliant Retirement and Investment Services representatives can help you determine which IRA is right or you. Ensure that your retirement savings are on track with a professional no-cost, no-obligation retirement savings analysis.
Is there a limit on the number of rollovers that can be done?
Yes, there is, and effective Jan 1, 2015, the IRS will be imposing the new IRA Rollover rule which means that an IRA owner may complete only one IRA to IRA rollover per 365 days, regardless of how many IRAs you own without differentiating between Traditional, Roth, and SEP IRAs.
This change of only one Rollover per year will only affect Rollovers, and will not have any impact on Trustee-to-Trustee Transfers.
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|• Not NCUA Insured||• No Credit Union Guarantee||• May Lose Value|
Alliant Credit Union and Alliant Retirement and Investment Services are not registered broker/dealers and are not affiliated with LPL Financial.
*CFP®=CERTIFIED FINANCIAL PLANNER™ The financial consultants of Alliant Retirement and Investment Services are registered representatives of LPL Financial.