Individual Retirement Accounts

Let's make this simple.

Nearly everyone is aware of 401 (k) plans, however they can be complex and challenging for smaller businesses to offer. A more affordable alternative is a Simplified Employee Pension Plan (SEP), which business owners can set up for themselves and their employees. They work much like Traditional or Roth IRAs, with one difference being that many business owners choose to make contributions to employee accounts.

• SEP-IRAs can be opened with as little as $100 at UVA Community Credit Union
• SEPs can function as either Traditional or Roth IRAs
• Contributions to Traditional SEP-IRAs are tax-deductible, and annual dividend earnings are not taxed
• Yearly contributions to Roth SEP-IRAs are not tax-deductible, but all qualified withdrawals are tax-free
• The maximum SEP-IRA contribution is much higher than the limits for regular IRAs or 401(k) plans. (SEP limits for 2024 are 25% of the employee's compensation, with a cap of $69,000.)
• Competitive dividends paid on a quarterly basis
• All SEP-IRA deposits up to $250,000 insured by the National Credit Union Administration, a federal government agency
• For more information on setting up SEPs for your business, contact your financial advisor or a UVA Community Credit Union representative

UVA Community Credit Union is a full-service financial institution with locations throughout Virginia's Central Piedmont and Valley area.