SEP-IRA
The Simplified Employee Pension IRA (“SEP-IRA”) is a retirement option designed for small businesses and their employees. Contributions into a SEP-IRA are entirely employer funded, but the employee manages the account and makes the investment decisions, just as he or she would with a Traditional or Roth IRA. Contributions as well as investment growth are tax-deferred until the account owner begin taking distributions.
Setting up a SEP-IRA offers an employer important benefits. Your company's contributions into a SEP-IRA are tax-deductible, and any contributions are made at your discretion from year to year. For 2009, an employer can choose to contribute anywhere from zero dollars up to $49,000 or 25% of an employee's total compensation (whichever is less.) This flexibility and simplicity is one of the advantages a SEP offers to small companies.
Limits
The SEP IRA can be limited to employees who are age 21 or over, have worked for the employer offering the SEP for the past three out of five years, and made at least $550 from the employer in each year.
For more information about First Investors funds when planning your SEP-IRA, you may obtain a free prospectus and shareholder manual by contacting your registered representative, writing to the address below, or calling (800) 423-4026. You should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. The prospectus contains this and other information about the funds, and should be read carefully before you invest or send money. An investment in these funds is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.
