A brighter tomorrow begins with planning today
Whether you're an individual investor or a business owner addressing employees' retirement needs, you'll find an IRA that fits your plans. Each account has unique tax advantages, which we're happy to explain.
Choose between Traditional and Roth IRAs, depending on whether you want tax-deductible contributions or tax-free distributions. Traditional IRAs generally makes sense if you plan to retire in a lower tax bracket because your distributions are taxable. If you plan to retire in a higher bracket, the Roth IRA might make more sense.
- Overnight and certificate options are available.
- Specific rules apply related to income limitations, distribution requirements and more, which our Member Service Representatives will discuss in detail.
The Simplified Employee Pension IRA is designed for self-employed people and small-business owners who want to provide a flexible and affordable retirement savings plan to employees. SEP IRAs are generally available to any employee age 21 and over who have been employed by you for at least three of the past five years and has at least $600 in annual earnings for the tax year.
- All contributions and dividends grow tax-deferred.
- You may take a federal income tax deduction equal to the number of your employer contributions, up to a maximum of 25% of the compensation paid during the year to employees (20% of net earnings after expenses if you’re self-employed). Plans meeting certain requirements may qualify for a $500 start-up cost tax credit.
- SEP IRAs do not require annual IRS filings, and Tidemark Federal Credit Union does not charge an administrative fee.
- Employers avoid significant fiduciary responsibility because all employees generally receive the same contribution rate, and investing decisions are the participant’s responsibility.
- Maximum annual contribution limits for SEP IRAs are high: $53,000 or 25% of each employee’s compensation for 2016 (20% of compensation if you are self-employed), whichever is less.
- As the plan sponsor, you decide every year what amount to contribute. You can vary the contribution percentage from year to year, or you can skip contributions altogether. All employees generally receive the same contribution rate.