Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. IBC Bank and IBC Investment Services are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using IBC Investment Services and may also be employees of IBC Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of IBC Bank or IBC Investment Services. This site is designed for U.S. residents only. The services offered within this site are offered exclusively through our U.S. registered representatives. LPL Financial registered representatives associated with this site may only discuss and/or transact securities business with residents of the following states: Alabama, Arkansas, Arizona, California, Colorado, Delaware, Florida, Georgia, Indiana, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Virginia and Washington.
| Not Insured by FDIC or Any Other Government Agency | Not Bank Guaranteed | Not Bank Deposits or Obligations | May Lose Value |
| SMALL BUSINESS | RETIREMENT ACCOUNTS | SELF EMPLOYED |
|---|---|---|
| SEP IRA (Simplified Employee Pension IRA) | Individual 401(K) | |
| Description | As a small business owner, you can make tax-deductible contributions. | As a small business owner with no employees, you may be able to contribute more than with other types of retirement plans. |
| Eligibility to Contribute | If you are a small business owner, you can contribute at any age. | If you are self-employed, a spouse, or a business partner you can contribute at any age. |
| Annual Maximum Contributions | As a small business owner, you are eligible for the following: 2020 tax year: Contribute up to 25% of your compensation or $57,000 whichever is less | Contributions are funded from a salary. Deferral, profit sharing or a combination thereof. 2020 tax year: Profit sharing: up to 25% of compensation or $19,500($26,000 if 50+ years of age) Combination may not exceed $57,000 |
| Tax Deductible Contributions | Your contributions and your employees contributions are deductible from your company's federal taxable income. | Your contributions and your business partners contributions are deductible from your company's federal taxable income. |
| Earnings and Withdrawal Taxation | Tax-deductible contributions and earning are taxed as ordinary income when withdrawn. | Tax-deductible contributions and earning are taxed as ordinary income when withdrawn. |
| Premature Withdrawal Penalties | 10% IRS early withdrawal penalty if withdrawn before age 59 1/2 unless an IRS exception applies- No penalties for 2020 if COVID-19 related. | 10% IRS early withdrawal penalty if withdrawn before age 59 1/2 unless an IRS exception applies- No penalties for 2020 if COVID-19 related. |
| Required Withdrawals | Must begin at age 72- 2020 is now optional. | Must begin at age 72- 2020 is now optional |