Get the information you need to manage SEP IRA plans and participant accounts and review testing requirements.
The employer can update the plan’s address, phone number and email address on the Online Group Investments (OGI) website. If the plan’s contact is changing, a completed Online Group Investments (OGI) Submitting Contributions form signed by the employer is required.
The employer can update the bank information on the OGI website. For step-by-step instructions, refer to the Online Group Investments website user guide.
These IRA reports can be ordered for all IRAs within your book of business:
Refer to IRA reports for more information and to order the reports.
The employer must complete a plan-level Financial Professional Change Request for a SEP IRA plan. The dealer firm and financial professional information is updated on all eligible participants’ accounts, except for those accounts where the participant has requested a prior change. Once the participant changes the account to a different dealer firm or financial professional, the employer can no longer change the information for that participant.
The SEP IRA plan must be amended if any of the following changes:
Contact us for assistance with amending the plan.
No, Capital Bank and Trust Company does not require notification of plan termination, but it is a good practice to inform employees.
Once an employee meets the plan’s eligibility requirements, provide them with a SEP IRA Employee Guide. The included SEP IRA Application should be returned to Capital Group to set up the account.
The participant can log in to their account on the investor website. Alternatively, they can complete the IRA Beneficiary Change form.
Requests to change future allocations can be made by phone. Call (800) 421-0180, ext. 39 for assistance.
Complete the Add/Update Bank Information form to link a bank account for Automated Clearing House (ACH) distributions. ACH contributions are not allowed into a SEP IRA.
Yes, but the employer will need to remove the former employee from the company’s contribution roster. Traditional IRA contributions are allowed into a SEP IRA, allowing the investor to continue to save for retirement.
Yes, each participant can choose their own financial professional. Complete the Financial Professional Change Request with a signature from the participant.
The following tests are required:
A plan is top-heavy if, on the determination date, the total value of the accounts of all key employees is greater than 60% of the total value of the accounts of all participants. Plans must be tested each year to determine whether they are top-heavy.
If the plan is top-heavy, a minimum contribution of 3% must be made to each non-key employee. (If this amount is less than 3%, then the percentage must be equal to the highest contribution rate of any key employee.) Refer to the terms and conditions in the SEP IRA Plan Sponsor Guide for additional details.
A key employee is any employee who, at any time during the relevant plan year, met one of the following requirements:
For more information on how the Internal Revenue Service (IRS) defines a key employee, refer to the IRS website.
The 415 test ensures that participants are not exceeding the annual contribution limits. Contributions are limited to the lesser of the dollar limitation for the year ($70,000 for 2025 and $69,000 for 2024) or 25% of the participant’s compensation.
No, there are no annual filings or disclosures required of the employer.
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The guidelines and procedures provided in the Account Resource Center may not apply to networked accounts or accounts not directly held by American Funds. The guidelines and procedures provided also apply only to those retirement accounts or Coverdell ESAs invested in American Funds with Capital Bank and Trust Company (CB&T) as custodian. The guidelines and procedures provided in the Account Resource Center do not apply to plans held in our retirement plan solutions — PlanPremier, PlanPremier-TPA or RecordkeeperDirect. Information on the Account Resource Center may change periodically, and previously printed information may not be current. Please refer to capitalgroup.com for the most current information available.
Financial professionals should always contact their back office to determine if there are any restrictions on the use of American Funds products, tools, services, websites and literature.