SEP IRAs

Many of your self-employed clients are looking for a low-cost way to offer retirement benefits to their employees. That means you need to provide them with the tools necessary to secure retirement income that continues to grow. A Simplified Employee Pension Plan, commonly known as a SEP IRA, provides self-employed people and small-business owners a flexible, convenient, and affordable way to contribute to their own, and their employees', retirement savings.

Today's opportunity

With comparatively high contribution limits and minimal administrative costs, a SEP IRA allows self-employed people and small-business owners to make the most of the assets directed toward employee benefits.

Investors who could benefit

  • Self-employed individuals and small business owners seeking a simple, inexpensive retirement plan that permits generous contributions.
  • Sole proprietors (doctors, lawyers, consultants, accountants, electricians, programmers) and small businesses.

Take advantage: Putnam Small Business SEP IRA

  • Higher levels of contributions than Traditional or Roth IRAs — $66,000 or 25% of each employee's compensation for 2023 (20% of compensation if investors are self-employed), whichever is less.
  • Plan participants pay no taxes on their contributions, including dividends and capital gains, until they begin withdrawing money.
  • The only administrative expense normally associated with a Putnam SEP IRA is a $25 annual maintenance fee paid by each plan participant.
  • Investors can choose from a broad range of investment options covering a wide array of investment styles.
  • Sponsors and participants receive top-quality service and support from a team of dedicated Putnam representatives.

Withdrawals are subject to income tax, and those made before age 59½ may be subject to an additional 10% tax.