Simplified Employee Pension Plans (SEP IRAs) give you and your employees a simple, tax-deferred way to save for the future.

SEP-IRA offers tax-savings potential as you save for retirement. Call 1-800-831-1344 to get started.

SEP-IRA Plan Benefits
Attractive Tax Savings
  • Save over $2,200** in current taxes per year while you build your retirement savings.
  • Deduct contributions you make to your SEP-IRA plan account as well as accounts for any employees.
  Without a
With a
Net Business Income $100,000 $100,000
Less: ½ Employment Tax $7,065 $7,065
Less: Standard Deduction $24,800 $24,800
Less: Plan Contribution $0 $18,587
Taxable Income $68,135 $49,548
Regular Tax Due $7,781 $5,551
Self-Employment Tax Due $14,130 $14,130
Total Tax Before Tax Credits $21,911 $19,680
Tax Savings** $0 $2,230
Tax-Deferred Growth Potential and Generous Contribution Limits
  • You can contribute up to $56,000 in 2019 and up to $57,000 in 2020 - much higher than the annual limit for Traditional and Roth IRAs.

  • Any earnings on your savings are tax-deferred until withdrawn.
Low Costs
  • No participant fees when you subscribe to paperless delivery.1
  • Deduct contributions you make to your SEP-IRA plan account as well as accounts for any employees.
Easy Maintenance, Easy Saving
  • You make deductible contributions directly to individual retirement accounts (SEP-IRAs) for yourself and your employees.
  • Participants may rollover or transfer to a T. Rowe Price SEP-IRA.

*Maximum amount of compensation that can be used in determining contribution is $280,000 for tax year 2019 and $285,000 for tax year 2020. This amount is increased periodically for inflation.

**Based on 2020 IRS Tax Tables. This chart represents an unincorporated, self-employed, married individual under age 50 with two dependent children, filing jointly. The individual has net business income of $100,000 and the spouse has no earned income. The chart shows the difference between the tax due if no contributions are made and the tax due if the maximum contribution is made to a SEP-IRA Plan. While personal exemptions have been eliminated for 2018, there is a child tax credit of $2,000 for each child for 2020, subject to phase-out at a higher income level. This calculation has not taken into account the pass-through deduction that may be available. Actual savings will vary depending on your personal circumstances and the availability of the pass-through deduction. Please consult with your tax advisor to discuss your specific situation. 

1 An annual $20 account service fee is charged for each mutual fund account with a balance below $10,000. The $20 account service fee will be waived for the following circumstances: Subscribe to electronic delivery of statements and confirmations; maintain an individual combined balance of $50,000 or more for all T. Rowe Price accounts (including mutual funds, Brokerage, and Small Business Retirement Plans); or qualify for T. Rowe Price Select Client Services. Participants can subscribe to paperless delivery via the T. Rowe Price website once their account is established. If the Participant Account is closed during the year, a $20 closeout fee will be deducted automatically from the proceeds of the total redemption. However, the closeout fee is waived when an account service fee was previously assessed to the participant account for that year or when the proceeds are being used for a rollover, transfer or conversion to a T. Rowe Price retirement plan account or T. Rowe Price IRA.

All investments are subject to market risk, including the possible loss of principal. Mutual funds are subject to management fees and expenses.

A retirement account should be considered a long-term investment. Retirement accounts generally have expenses and account fees, which may impact the value of the account. Early withdrawals are subject to taxes and possible penalties. For more detailed information about taxes, consult a tax attorney or accountant for advice.

Call a Small Business Retirement Specialist at 1-800-831-1344 to open an account

Plan Administrators

Learn how to establish a SEP-IRA Plan


Learn how to open and manage your SEP-IRA account