Compare Retirement Plans Designed for Your Small Business.

SCSB offers two types of employee retirement plans that offer big-time benefits without big-time start-up and operating costs. Different types of organizations qualify for different plans, so talk to an IRA specialist at your local SCSB branch today to see which retirement products are right for your business.

Simplified Employee Pension (SEP) IRA Plan

Established by the employer, Simplified Employer Plan (SEP) IRA’s permit larger contributions than regular IRA's. An employer may consist of a sole business owner, a partnership or a corporation. With a SEP IRA, employers can make contributions toward their employees' retirement income, including their own IRA.

Account Summary

  • The employer is allowed to deduct a percentage of the participant's compensation
  • SEP contributions are deductible by the employer and are not included in the employee's income for the year
  • SEP contributions are not subject to Federal withholding, FICA or FUTA taxes, unless you are self-employed
  • Interest earned on the SEP deposit is sheltered from federal and most state income taxes until withdrawals are made at retirement

Simple IRA Plan1

For employers with 100 employees or less, SIMPLE IRA plans offer a saving incentive match for employees. This plan allows an employee/participant to contribute funds from his or her own payroll and the employer can match the contribution up to a certain percentage of the employee's compensation. Annual employee contribution and employer matching limits exist with this plan.

Account Summary

  • Employee-sponsored retirement plan
  • Employer is eligible if it employs 100 or fewer employees
  • Employee, by making elective deferrals, can defer current income taxation
  • An employer is allowed to deduct the cost of these elective deferrals
  • Interest earned on SIMPLE deferrals is sheltered from federal and most state income taxes until withdrawn
  • Employees can contribute up to $16,0002 of earned income per year, or $19,5002 if they're 50 and over

Important Information

1 Contributions to a SIMPLE are excludable from the gross income of the employee. The employer will be able to deduct both its elective deferral contributions and its matching contributions.

2 Annual cost-of-living adjustments (COLA) determines the deferral limit.