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SEP IRA

A Simplified Employee Pension IRA (SEP IRA) is similar to a Traditional IRA, but is specifically designed for small business owners or self-employed individuals.
Aside from the higher contribution limit, SEP-IRAs are generally subject to the same rules governing Traditional IRAs and are inexpensive for employers to offer — there is virtually no administration and the cost is minimal.

Contribution Limits

The employer is the sole contributor and may contribute, on the employee's behalf, up to 25% of the employee's compensation or $51,000 (for 2013), whichever is less.

Tax Advantages

Contributions to a SEP IRA are generally 100% tax deductible and investment earnings in a SEP IRA grow taxed deferred. Withdrawals after age 59 1/2 are taxed as ordinary income. Withdrawals prior to age 59 1/2 may incur a 10% IRS penalty as well as income taxes.

Call 1-800-DREYFUS to learn more about how a SEP IRA can help you build your retirement savings.

This does not constitute tax advice. Consult your tax advisor. There are fees, expenses, taxes and penalties associated with SEP-IRAs.

Investors should consider the investment objectives, risks, charges, and expenses of a fund carefully before investing. Download a prospectus that contains this and other information about a fund, and read it carefully before investing.