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.