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Individual Retirement Accounts


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Individual Retirement Accounts



IRA Annuities

ROTH IRA Annuities

SEP IRA Annuities

Qualified Annuities

Non-Qualified Annuities

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Simplified Employee Pension


SEP IRA Annuities




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403(b) TSA

Tax Sheltered Annuity


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Maryland IRA Rollovers

Maryland 401(k) Rollovers

Maryland ROTH IRA Conversions

SEP IRA’s for all residents living in Maryland

For more information about Maryland SEP IRA’s click here.

Maryland SEP IRA’s

Maryland Annuity Resource and offers SEP IRA services to self employed residents living in Maryland.  We believe that any plan but especially a SEP IRA is the foundation to any investment portfolio. There are many differences amongst all of the Individual Retirement Accounts but we wanted to show you about SEP IRA’s in this section.

Simplified Employee Pension (SEP) plans can provide a significant source of income at retirement by allowing employers to set aside money in retirement accounts for themselves and their employees. A SEP does not have the start-up and operating costs of a conventional retirement plan and allows for a contribution of up to 25 percent of each employee’s pay.

  • Available to any size business
  • Easily established by adopting Form 5305-SEP, a SEP prototype or an individually designed plan document
    • If Form 5305-SEP is used, cannot have any other retirement plan (except another SEP)
  • No filing requirement for the employer
  • Only the employer contributes
    • To traditional IRAs (SEP-IRAs) set up for each eligible employee
    • Employee is always 100% vested in (or, has ownership of) all SEP-IRA money

How does a Maryland SEP IRA work?

Jed works for the Rambling RV Company. Rambling RV decides to establish a SEP for its employees. Rambling RV has chosen a SEP because the RV industry is cyclical in nature, with good times and down times. In good years, Rambling RV can make larger contributions for its employees and in down times it can reduce the amount. Rambling RV’s contribution rate (whether large or small) must be uniform for all employees. The financial institution that Rambling RV has chosen for its SEP has several investment funds from which to choose. Jed decides to divide the contribution to his SEP-IRA among three of the available funds. Jed, an employee, cannot contribute because SEPs only permit employer contributions.

Pros and Cons:

  • Easy to set up and operate
  • Low administrative costs
  • Flexible annual contributions – good plan if cash flow is an issue
  • Employer must contribute equally for all eligible employees

Who Contributes: Employer contributions only

Contribution Limits: Total contributions to each employee’s SEP-IRA are limited.

Filing Requirements: An employer generally has no filing requirements.

Participant Loans: Not permitted. The assets may not be used as collateral.

In-Service Withdrawals: Yes, but includible in income and subject to a 10% additional tax if under age 59 1/2.

Additional Resources  Source IRS

Contributions an employer can make to an employee’s SEP-IRA cannot exceed the lesser of:

    1. 25% of the employee’s compensation, or
    2. $51,000 (for 2013, $52,000 for 2014).

Note: Elective deferrals and catch-up contributions are not permitted in SEP plans.

Participants in Salary Reduction Simplified Employee Pension (SARSEP) plans established before 1997 were entitled to elective deferral contributions. For these plans, a participant’s elective deferral contributions are further limited to $17,500 (in 2013 and 2014) or 100% of their compensation, whichever is less. Catch-up contributions are not subject to this limit.

Maryland Annuity Resource offers SEP IRA’s in all of Maryland and SEP IRA’s do fit some situations but not all so please take a look at all of your options before deciding on one distinct plan.