How do you decide if you should establish a SEP or a Keogh? You must compare both types of plans and determine which retirement plan best fits your needs. Here is a chart summarizing the key features of SEPs and Keoghs:
Key Features of SEPs and Keoghs
|
Features / Provisions |
SEP |
Keogh |
|
Plan document |
One-page form can be used: IRS Form 5305-SEP |
Full plan document |
|
Maximum contribution Maximum employer deduction |
Lesser of $57,000 in 2020 ($56,000in 2019) or 100% of compensation per employee. 25% of total eligible compensation of employees covered by the plan. |
|
|
Loan provisions |
Cannot borrow against SEP account |
Able to borrow against Keogh account |
|
Eligibility |
Less restrictive rules for employee eligibility |
More restrictive rules for employee eligibility |
|
When to establish |
Have until due date of tax return to establish |
Must be established by December 31 |
|
Annual reporting requirements |
None |
Annual reporting requirement on Form 5500 |
- ARE NOT A DEPOSIT
- ARE NOT FDIC-INSURED
- ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
- ARE NOT GUARANTEED BY THE BANK
- MAY GO DOWN IN VALUE
Important information about procedures for opening a new account
To help the government fight the funding of Terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.
What this means to you: When you open an account, we will ask you for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
Investment products are offered through Osaic Institutions, Inc., Member FINRA/SIPC. Insurance products offered through Osaic Institutions, Inc.
