The Simplified Employee Pension Investment Retirement Account (SEP IRA) is a type of traditional IRA allows business owners to contribute towards their future retirements and employee’s retirement. One can open a SEP account with the help of any custodian and the employees have the option to choose where the amount is to be invested based on their retirement period and age. Generally the investments are made on stocks, bonds and mutual funds.

SEP Eligibility
To open a SEP account, all employees must satisfy the below three conditions.
1. They must be at least a minimum age of 21 years old.
2. Worked at least 3 years for the company in the last five years.
3. Received at least 600 dollars compensation from the company.

SEP Contributions
To receive contributions, employees must create a traditional IRA account before set up a SEP IRA. Because, the SEP contributions are deposited only in the traditional IRA account. Some finance companies may require the traditional IRA account to be renamed as SEP IRA account. It varies depends on the finance agents. Also, the contribution amount has certain limits. The contribution amount contributed must not exceed the limit of 25 percent of employee compensation or 56,000 dollars of employee compensation. The other rules for the SEP IRA is same as the traditional IRA account since it is one of the type of it.

SEP Withdrawal
Unlike other retirement investment account, withdrawal amount is very easy. One can make withdrawal at any time. Once withdrawal, the amount will be equally distributed among all eligible employees and make sure you satisfy the IRS minimum distribution rule. When withdrawal made before the age of 59½, an addition of 10% tax is generally applied.

Where and How to Set Up a SEP IRA Account?
Many retirement investment account providers are there to easily set up a SEP IRA account. But, it is best to go with a professional company which makes the set up process simple and meet customer needs. Like this, Sprout IRA is one of the prominent companies who help investors like you on setting up retirement plans. They simply make all the complex process ease and helps to get a best retirement investment account. To know more details about SEP investment plan, do visit their website at https://sproutira.com/

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