Business Retirement Services / Business SEP IRA Business SEP IRA A SEP (Simplified Employee Pension) IRA (Individual Retirement Account) is a variation of the Traditional IRA in which you, the employer, make annual contributions to the account. These contributions must be equal to all participating employees. Some additional features of the SEP IRA include: contributions are tax-deferred annual contributions are discretionary and are tax-deductible to the employer 100% immediate vesting any earnings grow tax-deferred until withdrawn fewer administrative requirements than qualified plans Eligibility Requirements Employer must include all employees who: are a minimum age of 21 have worked for your company for any three of the immediate past five years earned at least $750 in compensation in 2025 Contribution Limits The maximum employer contribution for a SEP IRA is the lesser of 25% of total compensation or $70,000 (for 2025) as indexed thereafter per participant (approximately 20% if self-employed). In addition, there is a uniform contribution rate for employees and the employer. We're here to help To start a SEP IRA, please call a Frost wealth advisor at (888) 268-9202. Request a call Find a location