If you’re a small business owner looking to give your employees a simple but valuable benefit, the SEP IRA is relatively easy to set up and administer. 

The Simplified Employee Pension (SEP) is a retirement plan that lets self-employed and small business owners make a tax-deferred retirement contribution to the plan on behalf of each employee. 

Voya can help you set up a SEP plan for your small business, and serve as the IRA custodian holding assets for each employee. 

Key Features

  • Do it for yourself. You can set up a SEP plan for yourself if you’re self-employed (sole proprietor or as a partner), with or without employees.
  • Do it for your employees. If you run a business and have employees, a SEP plan covers everyone. 
  • Contributions are not included as part of the employee’s income.
  • Bigger contributions allowed.  Contribution limits are higher than with Traditional or Roth IRAs – up to 25% of each employee’s pay with a maximum annual limit of $56,000 in tax year 2019.
  • Contributions can vary. To adjust for cash flow fluctuations, employers can decide on how much to contribute each year or can opt out for a year. 
  • Contributions could reduce your tax liability. Contributions are deducted from the employer’s income which may reduce current federal income taxes. 
  • No employee contributions. Only the employer can make contributions. 
  • Keep on contributing. An employee can continue to contribute to their own Traditional or Roth IRA (subject to IRS income eligibility guidelines).  


This material is provided for general and educational purposes only; it is not intended to provide legal, tax or investment advice.  All investments are subject to risk.  We recommend that you consult an independent legal advisor or financial professional for specific advice about your individual situation.

The tax information herein is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor. 

Securities offered through Voya Financial Advisors, Inc. member SIPC.

Neither Voya nor its affiliated companies provide tax or legal advice. Please consult with your tax and legal advisors regarding your individual situation.