A Simplified Employee Pension (SEP) plan provides business owners with a simplified method to contribute toward their employees' retirement as well as their own retirement savings. Contributions are made to an Individual Retirement Account  (IRA) or Annuity set up for each plan participant.

To establish a SEP, do the following: 

1. If the employer has not established a SEP, have them do one of the following:
   • Complete the 5305-SEP form 
   • With Internal Revenue Services (IRS) approval, establish their own SEP
2. If the employer used the 5305-SEP form:
   1. Provide the employer with a copy of the form.  
   2. The employer completes the form and makes copies of the entire brochure for each employee. Note: You are not responsible for making sure the employer does this.
3. The employer must instruct their employees to establish a traditional or Roth IRA for the purpose of receiving contributions from the employer if they do not already have one. 
4. Follow the same instructions as for establishing a Traditional or Roth IRA, marking the contribution as a SEP/IRA contribution. If the employer makes additional contributions to the employee’s Traditional or Roth IRA, follow the same procedures as for making contributions to established Traditional or Roth IRA’s.
5. The employer can make out one (1) check for multiple SEP/IRA contributions if several employees have their Traditional or Roth IRA established with CCB.
6. Complete an IRA Contribution form for each employee receiving a SEP contribution. See Contributing to Existing IRA Plans.
7. Complete a Traditional/Roth Contribution form for SEP contributions received in the mail. See Contributing to Existing IRA Plans.