With an SEP IRA, you can take advantage of company contributions and accumulate tax-deferred earnings.
How the SEP IRA works
A Simplified Employee Pension (SEP) IRA allows self-employed individuals or small business owners to save for retirement tax free until withdrawal.
With an LGFCU SEP IRA you only need $25 minimum to open your account. After that you’re required to maintain that balance. Contribute 25% of your salary, when you want, up to the annual maximum as defined by the IRS. Ongoing contributions are not required. Dividends, which some financial institutions call interest, are compounded daily, and are paid monthly.
There is no charge to open or service the account, unless the account balance falls below $25. Then a service fee of $1 per month will be charged. A monthly statement is available and recurring Funds Transfer is also available for contributions.
Rates and annual percentage yields (APY) are subject to change daily. Funds may not be borrowed or used as security for a loan. IRA account transactions are limited to six per month, as defined in federal regulations. A 6% non-deductible federal excise penalty applies for over-the-limit contributions.