SEP IRAs allow flexible employer-only contributions

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 three of the last five years must be included in the plan. Certain employees can be excluded, including:

• Workers with annual earnings under $800 in 2026
• Union members covered by a collective bargaining agreement
• Nonresident aliens with no source of U.S. income

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.