What if I don’t have an EIN for my SEP IRA?

A SEPis a tax-advantaged savings plan for self-employed individuals and small business owners with only a few or no employees. SEP stands for Simplified Employee Pension that the employer and the eligible employees set up together.  The employer signs the contribution agreement included with IRS Form 5305-SEP and distributes a copy, along with a few other administrative notices, to the eligible employees.  Each eligible employee, including the owner, establishes  an IRA (Individual Retirement Account) with an IRA provider of the employee’s choosing..

A SEP IRA is favored by many small business owners because the businesscan contribute more to a SEP IRA on their behalf than they can personally contribute pre-tax to a traditionalIRA. Individual pre-tax contributions to a traditionalIRA are capped at $6,000 (2021) or $7,000 with a catch-up contribution for those age 50 and older.  The SEP IRA contributions made by the business to each IRA can be as high as  the lesser of 25% of compensation (up to $290,000 for 2021) or $58,000 (for 2021).   Eligible employees are not permitted to make individual pre-tax or nondeductible contributions to their SEP-IRA.

SEP IRAs are easy to set up,  You don’t even need an EIN.  

What’s an EIN? An EIN (Employer Identification Number) is a federal business identifier that can be obtained from the IRS and used by businesses for a variety of reasons. The IRS, however, doesn’t require an EIN to establish a SEP IRA.

The good news is that neither does Guideline.  

We realize not all small business owners have one. So, if you’re filing your business taxes under your Social Security number, Guideline can use  that number as an alternative to an EIN to perform the administrative services you'll need to operate your SEP IRA at Guideline.

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