IRAs for Businesses

Today, retaining and rewarding employees is more important to businesses than ever. An employer-sponsored retirement plan is a great way to enhance your employee benefits program and keep your business competitive. First Citizens offers two IRA-based plans with a variety of fixed- and variable-rate FDIC insured savings options.

Simplified Employee Pension (SEP) IRA

If you are self-employed or are a small business owner, a SEP is a great way to establish a retirement plan for you and your employees.

  • Employers make tax-deductible contributions into a Traditional IRA in the name of each employee
  • Employees enjoy tax-deferred earnings
  • Plan is easy to establish and maintain

Savings Incentive Match Plans for Employees (SIMPLE) IRA

Designed for businesses with fewer than 100 employees, a SIMPLE IRA is similar to a 401(k) plan. Under a SIMPLE IRA plan, employees may make before-tax contributions and the employer makes matching contributions or contributes a set percentage of each employee's compensation. All contributions are subject to annual IRS limits and are made directly to an Individual Retirement Account set up for each employee.

  • Employees enjoy tax advantages by reducing their taxable income with before-tax contributions, and with earnings that grow tax deferred until retirement
  • Any employee who has earned at least $5,000 in any previous two calendar years and is expected to earn at least $5,000 in the current year is eligible to participate
  • Employers can usually deduct contributions to the plan as a business expense
  • Plan is easy to establish and maintain

A First Citizens banker can help you determine which plan suits your needs. For more information, stop by your local Branch Office or call 1-888-612-4444.

This information should not be considered tax advice. Any tax-related decisions should be made only after consultation with your tax advisor.

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