SEP IRAs from PNC Wealth Management

Offered by PNC Wealth Management. This plan type allows you to leverage tax-advantaged investments for yourself and your employees.

Whether you’re running your own business as a sole proprietor or have a staff of any size, consider a SEP-IRA (Simplified Employee Pension-IRA) from PNC Wealth Management.
This plan type allows you to leverage tax-advantaged investments for yourself and your employees.

Key Features

Benefits Your Employees

Eligible employees reap the benefits of a Traditional IRA, but with higher contribution limits

Tax Efficiencies

Money is invested tax-deferred, and employers may get a tax deduction for all contributions

Immediate 100% Vesting

Any contributions in a SEP are 100% vested immediately

Overview

  • Generally available to sole proprietorships, partnerships, corporations, Subchapter S corporations and non-profit organizations of any size
  • Only the employer contributes (and must make the same contribution for all employees); employees do not contribute to a SEP-IRA
  • All eligible employees are covered, and contributions are 100% vested immediately
  • Funds can be invested the same way as in any other IRA, and earnings accumulate tax-deferred
  • Contribution limits are higher than in other IRA types
  • Employers may be able to take a tax deduction for contributions made for their employees
  • Administration may be simpler than a 401(k) plan
  • Self-employed businesses can set up a SEP even if the owner is contributing to an employer-sponsored retirement plan at a second job

Additional Information

How It Works

The employer must first establish the plan. Then the employer can make tax-deductible contributions on behalf of all eligible employees into their separate SEP-IRA accounts. All employees must receive the same benefits, though this amount can be changed each year.

Contribution Limits
2024

Employers
Any employer with one or more employees, including sole proprietorships, partnerships, corporations, Subchapter S corporations and non-profit organizations

Contribution
Employer can contribute a maximum of 25% of the employee’s eligible compensation – up to $69,000

Self-employed
Anyone with net compensation from self-employment

 Contribution
The same contribution limits apply to the self-employed that apply to employers; however, special rules apply when determining the maximum deductible contribution, based on net profit from the business

Account Fees & Minimums

Vary based on investment choices. 

Associated Products & Services

The following information may be provided by PNC Wealth Management affiliates, including PNC Bank®, PNC Private Bank® or PNC Institutional Asset Management®:

Small Business Retirement Plan Options

Simple IRA

If you employ fewer than 100 employees who earned $5,000 or more in any two years prior and who are expected to earn at least that much this year, consider a SIMPLE (Savings Incentive Match Plan for Employees) IRA from PNC Wealth Management. This plan type is easy to open and run, has low costs and fees, and all funds accumulate on a tax-deferred basis.

Investment Solutions

Life Insurance

For many, life insurance is a critical component of an overall financial plan, and selecting the right amount of coverage and policy type can be a challenge. As with all investments, it’s important to monitor life insurance policies to ensure they’re helping you to achieve your financial goals. PNC Wealth Managment can provide you with a no-cost policy review to help confirm you’re receiving the best possible value.

PNC Insights

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