Simplified Employee Pension (SEP)

Business owners who wish to make retirement contributions for themselves and their employees may establish a Simplified Employee Pension (SEP). SEPs benefit both the employer and the employee and can help to foster employee loyalty and retention. Easy to start and administer, SEPs at Territorial incur no fees.  They are also flexible; business owners can adjust their contribution amounts from year to year. SEPs also make it easy for employees to save for retirement. Employees can open a SEP-IRA to accept their employer’s as well as their own subsequent retirement contributions. While the employer can continue to contribute to their employees’ accounts, the employees own and control their SEP-IRA.

For more information about establishing a SEP at your company, consult your tax adviser. Should you determine that a SEP would be best for your business, please call 808-946-1400 on Oahu or toll free 1-800-951-8418 and ask to speak to a Retirement Plans Specialist.