• What a SEP IRA is
  • How you can update your address or personal information on a SEP IRA 
  • How you can make contributions into or take money out of a SEP IRA

Before you get started

A Simplified Employee Pension (SEP) IRA is an employer-sponsored retirement plan allowing employers to make discretionary contributions for their eligible employees. While the plans do not allow for salary deferral contributions, employees may be able to make traditional IRA contributions into their SEP IRA.

Consider talking to your financial professional before performing financial transactions. They can help you make decisions that support your long-term financial plan.

SEP IRA account updates

Participants with Capital Bank and Trust Company (CB&T) SEP IRAs can log in to:

SEP IRA contributions

SEP IRAs accept employer contributions. These are at the discretion of the employer and are not required annually. To change or update the funds your employer contributions are invested into, contact your employer.

In addition to employer contributions, SEP IRAs may accept annual traditional IRA contributions.

You can log in to your account or contact us to make one-time Automated Clearing House (ACH) purchases or set up/update automatic investments with existing bank information. If you do not have a bank account already on file for ACH purchases, you can link your bank account online or by completing the Add/Update Bank Information form (PDF).

SEP IRA distributions

You can distribute money from your CB&T SEP IRA at any time. Most distributions can be requested over the phone or by logging in to your account. You can also make a request by completing the IRA Single Distribution Request (PDF).

If you are under the age of 59½ and no exception applies, the distribution is considered an early distribution and is subject to the 10% early distribution penalty. For more information on IRA distributions and potential taxes and penalties, including a list of early distribution exceptions, review Traditional and Roth IRA tax FAQ.

Taxable distributions of employer contributions are treated as ordinary income and are subject to federal and, if applicable, state income taxes in the year they are withdrawn. The total amount of distributions, including any federal or state income tax withheld, is reported on Form 1099-R, available in late January.

Note: SEP IRAs do not allow for loans.

SEP IRA required minimum distributions (RMDs)

The Internal Revenue Service requires SEP IRA participants to begin taking money annually from their account when they reach age 73,* even if they are still making and receiving contributions.

Your RMD must be calculated separately for each IRA you own. However, you can withdraw the total amount from one or more of your IRAs, including your SEP IRA. Review Required minimum distributions for additional information.

You can set up a recurring automatic RMD by completing the Required Minimum Distribution (RMD) Request (PDF). As custodian, CB&T will calculate your RMD using the applicable life expectancy factor and can send the distribution to your bank account annually.

* The SECURE 2.0 Act increased the age when RMDs must begin from 72 to 73, effective for individuals turning 72 on or after January 1, 2023. If you reached age 72 before this date, you are still required to take RMDs.

SEP IRA exchanges

You can exchange and/or rebalance shares in your CB&T SEP IRA by logging in to your account or over the phone.

SEP IRA transfer of assets and rollovers

Money in other retirement plans can generally be rolled over or transferred into a SEP IRA. For information on transferring or rolling over money into a CB&T SEP IRA, contact us or your financial professional. You can also visit IRA incoming rollovers and transfers for information on moving retirement assets into a CB&T SEP IRA.

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This material does not constitute legal or tax advice. Investors should consult with their legal or tax advisors.
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