PRO SEP is a new retirement option under USPTA Retirement Gold+ program. With PRO SEP you are now eligible for a SEP plan even though you are self-employed. It is a plan that allows you to contribute as little or as much as you desire up to the possible total limit of $54,000. You benefit from the institutional buying power of a SEP plan which provides investment options you cannot obtain on an individual level and at much lower investment expense. The master plan design of the program and the relationship with the USPTA has made affordability easy.

USPTA PRO SEP - Overview


How much can I contribute to my SEP?

The contributions you make to each employee’s SEP-IRA each year cannot exceed the lesser of:

1.25% of compensation, or

2.$54,000 (for 2017 and subject to annual cost-of-living adjustments for later years).

These limits apply to contributions you make for your employees to all defined contribution plans, which includes SEPs. Compensation up to $270,000 in 2017 and subject to cost-of-living adjustments for later years) of an employee’s compensation may be considered. If you're self-employed, use a special calculation to determine contributions for yourself. Contributions must be made in cash; you cannot contribute property.If you’ve contributed more than the annual limits to your SEP plan, find out how to correct this mistake.

How much can I contribute if I’m self-employed?

The same limits (20% of Net Schedule C) on contributions made to employees’ SEP-IRAs also apply to contributions if you are self-employed. However, special rules apply when figuring the maximum deductible contribution. See Publication 560 for details on determining the contribution amount.

Must I contribute the same percentage of salary for all participants?

Most SEPs, including the IRS model Form 5305-SEP, require you to make allocations proportional to your employees' salary/wages. This means that everyone’s contribution is the same percentage of salary.

If you haven’t made contributions to participants’ SEP-IRAs equal to the same percentage of each participant’s compensation, find out how you can correct this mistake.

If you are self-employed, base your contribution on net profit -minus one-half of the self-employment tax - minus your SEP contribution. See IRS Publication 560 on determining the contribution amount.

Retirement Account Consolidation

You can transfer your current IRA accounts into this plan. By doing this you avail yourself to what could well be lower expenses, more attractive investments, and access to the funds you cannot source elsewhere. Moreover, your entire retirement account can be calibrated to your retirement needs and goals.

Institutional Investments

In a SEP, fund companies will lower their minimums for their lowest cost fund shares or have special share classes. SEPs also enjoy an investment called Stable Value where you can invest without market risk and receive a return better than a cash account.


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