SEP IRAs | American Funds

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SEP IRAs

A SEP IRA is an easy, low-cost way for small-business owners to save for retirement on a tax-deferred basis with the advantage of American Funds’ quality investment options and exceptional service.

An American Funds SEP plan removes many of the key obstacles that prevent small-business owners from offering a retirement plan:

  • Low setup and maintenance costs
  • Flexible, discretionary contribution limits
    • There is no requirement to make ongoing contributions, and a SEP plan can be discontinued at any time.
  • Low administrative burden
    • Minimal paperwork and tax filing requirements.
    • Online resources allow for fast, simple and secure transactions, 24 hours a day.
  • Limited fiduciary liability
    • Accounts are set up by eligible employees, and participants control their own investment choices.
  • One employee is enough
    • A SEP works even for sole proprietors.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing. 

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The defined contribution annual additions limit is effective for limitation years ending in the calendar year.

Content contained herein is not intended to serve as impartial investment or fiduciary advice. The content has been developed by Capital Group, which receives fees for managing, distributing and/or servicing its investments.