Business Retirement Acct. FAQs

Simplified Employee Pension (SEP) plans can provide a significant source of income at retirement by allowing employers to set aside money in retirement accounts for themselves and their employees. A SEP does not have the start-up and operating costs of a conventional retirement plan and allows for a contribution of up to 25 percent of each employee’s pay.

 Employers must contribute equally for all eligible employees.

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Retirement Accounts

Business IRA Accounts

Traditional IRA

  • Contributions may be fully tax deductible up to $5,500 per year
  • If you’re 50 or older, you may contribute an extra $1,000 per year
  • Earnings grow tax deferred, and withdrawals are taxed as normal income
  • Withdraw funds at age 59 ½ without IRS penalties.
  • Withdrawing before age 59 ½ may be subject to income or penalty tax (consult with your tax adviser)

Roth IRA

  • Contributions are not tax deductible and are limited to $5,500 per year.
  • If you’re 50 or older, you may contribute an extra $1,000 per year
  • Withdrawals are tax-free after age 59 ½ or for first-time homebuyers if the IRA has been opened for 5 years. Income limitations may apply.
  • You may make contributions from earned income after age 70 ½.
  • Mandatory distributions are not required.
  • Traditional IRAs can be converted into Roth IRAs.

IRA Certificates

  • Minimum balance of $500
  • Variety of terms to meet your needs
  • Competitive term-based rates
  • Learn more about certificates here

Simplified Employee Pension (SEP)

  • Available to any size business
  • No filing requirement for the employer
  • Only the employer contributes
    • To traditional IRAs (SEP-IRAs) set up for each eligible employee
    • Employee is always 100% vested in all SEP-IRA money
  • Easy to set up with low administrative costs
  • Flexible annual contributions – good plan if cash flow is an issue

Starting as early as possible is key, and each member’s situation can be a little different. Get started today by Interra's business team to learn about these and other investment options, to ask questions or to set up an appointment!

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Equal Housing Lender ASI

Your savings insured to $250,000 per account.  By members' choice this institution is not federally insured.