CLIENT ACCOUNTS

Recently Viewed Accounts

You have no recently viewed accounts.

Select your location

Who are you ?

Select another location

Wer bist du ?

Wählen Sie einen anderen Ort

Qui êtes vous ?

Sélectionnez un autre emplacement

Qui êtes vous ?

Sélectionnez un autre emplacement

Qui êtes vous ?

Sélectionnez un autre emplacement

Wer bist du ?

Wählen Sie einen anderen Ort

Wer bist du ?

Wählen Sie einen anderen Ort

Qui êtes vous ?

Sélectionnez un autre emplacement

Wer bist du ?

Wählen Sie einen anderen Ort

Qui êtes vous ?

Sélectionnez un autre emplacement

Who are you ?

Select another location

Who are you ?

RETIREMENT PLAN INVESTOR

Use your plan ID (available on your account statement) to determine which employer-sponsored retirement plan website to use:

IF YOUR PLAN ID BEGINS WITH IRK, BRK, 1 OR 2

Visit americanfunds.com/retire

IF YOUR PLAN ID BEGINS WITH 34 OR 135

Visit myretirement.americanfunds.com

SEP IRAs allow flexible employer-only contributions

SEP IRAs for any businesses, including sole proprietors

Benefits

  • Unrestricted access — Although available to businesses with any number of employees, SEP IRAs often appeal to small businesses with few
    or no employees. 
  • Flexible employer contributions
    — Employers have complete discretion about whether to make contributions or not. Contributions are immediately vested.
    — Annual contributions can be up to 25% of compensation or $58,000,* whichever is lower.
    — Contributions must be the same percentage of compensation for every eligible employee. See Contributions section below for more details.
  • Easy plan setup and administration — A third-party recordkeeper, third-party administrator, and annual 5500 and discrimination testing are not required. 
  • Lower cost — Plan setup and annual fees are typically lower than those of 401(k) plans.
  • Tax benefits — For employers, contributions are tax deductible. For participants, contributions and earnings are not taxed until withdrawn.
    New plans may be eligible for an annual tax break of $500 to $5,000 for 3 years.

Highlights

SEP IRA

Contributions at employer’s discretion; no participant contributions

Plan service model

Financial professional provides individual and investment advice to each participant

Cost per participant

A one-time $10 setup fee and ongoing $10 annual fee

Pricing

Class A and C shares (commissionable) and Class F-2 (fee-based)

Investments

Participants choose from a wide range of American Funds, including the American Funds Target Date Retirement Series®

Contributions

  • Contributions are optional and may vary at the employer’s discretion; participants cannot make contributions.
  • In general, maximum annual contributions are 25% of the participant’s compensation or $58,000, whichever is lower.*
  • Contributions must be the same percentage of compensation for all eligible employees. Contributions are immediately vested.

Testing

Top-heavy and 415 testing are required. A plan is top heavy if the combined value of key employee accounts is more than 60% of the total of all accounts. IRS Form 5500 and DOL filings are not required.

Details

Eligible employers — Businesses of any size, including sole proprietors, for-profit and non-profit companies, and government entities.
Eligible employees — Any employee who is 21 or older and has worked for the employer at least 3 of the last 5 years must be included in the plan. Certain employees can be excluded, including:

  • Workers with annual earnings under $650 in 2021 ($600 in 2020).
  • Union members covered by a collective bargaining agreement.
  • Nonresident aliens with no source of U.S. income

  • Participant contributions are not allowed.
  • Employer contributions can vary or not be made at all, at the employer’s discretion. Factors may include the company’s profitability, cash flow, etc.
  • With the exception of self-employers, the maximum annual contribution is 25% of a participant’s compensation or $58,000,* whichever is lower. The $58,000 limit is for 2021 and is subject to cost-of-living adjustments for future years.
  • For self-employed individuals, compensation is based on self-employment income minus deductible plan contributions and 50% of self-employment taxes paid.
  • Contributions must be the same percentage of compensation for all eligible employees, up to the stated maximums. For example, if an employer decides to make contributions of 5% of compensation, every participant — including business owners — will get a 5% contribution, up to $58,000.
  • Contributions are immediately vested.

Limited fiduciary responsibility

  • Fiduciary liability is limited because IRAs are set up for each eligible employee, and participants make their own investment choices.
  • Sponsors can use Capital Group investment and retirement materials from the SEP IRA section of Forms & Literature to educate employees.

Plan establishment and funding deadlines

  • For contributions to be made for a tax year, the plan must be established and contributions must be funded by the employer’s tax filing deadline, plus extensions.

Sep IRA from Capital Group, home of American Funds

  • Employer contributions — To simplify and expedite the contribution process, employers submit contributions through the Online Group Investments website. The secure site makes it easy for employers to create payroll rosters, contribute directly from bank accounts, access transaction history and update participant information.
  • Participant investments — Because participants control their accounts, they can monitor their investments and make exchanges and other transactions at any time online or by phone.
  • Aggregating accounts for a lower Class A share sales charge — American Funds Class A shares are sold with an upfront sales charge. If account assets reach certain levels (breakpoints), a lower or no sales charge may apply. Aggregation of participant accounts in a SIMPLE IRA plan depends on the plan agreement selected by the plan sponsor:

— Capital Group prototype agreement: Because all contributions come to Capital Group, all accounts in the plan can  be aggregated when determining sales charges. If the grouped assets reach a breakpoint, all participants benefit from the reduced sales charge. Participant accounts in the plan cannot be aggregated with personal accounts.
— Any other plan agreement: Because contributions may or may not come to Capital Group, accounts in the plan are not aggregated. Instead, a participant’s account may be linked with his or her other personal Capital Group accounts.

Ready to prospect?

SEP IRA program highlights

Show clients the benefits of a Capital Group SEP IRA plan.

Plan setup and service

To set up a new plan, visit the service center for a step-by-step guide with all of the required paperwork. There’s also a comprehensive collection of guides, resources and forms for everything you, employers and participants will need to service the plan and manage accounts.

* Contribution limits for 2021. For self-employed individuals, compensation is based on self-employment income minus deductible plan contributions and 50% of self-employment taxes paid.

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.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Use of this website is intended for U.S. residents only.

American Funds Distributors, Inc., member FINRA.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.