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SEP- IRA Account
The Janus Advantage

A Simplified Employee Pension Individual Retirement Account (SEP-IRA) is an investment vehicle designed for small business owners, self-employed individuals and their employees. It is used because it allows participants to invest money for retirement on a tax-deferred basis.

Employers can make deductible contributions directly to employees' SEP-IRAs. Additionally, employees have the option to make an annual Traditional IRA contribution to the same account.

Is a SEP-IRA right for you?

  • Are you self-employed and want some of the benefits of an employer-sponsored plan without complicated administration?
  • Do you have a small business and want tax-deferred growth and tax-deductible business expenses?
  • Do you want to avoid the IRS reporting requirements associated with more complex plans?
  • Do you meet the age and service requirements established under your employer's SEP-IRA plan?


  • The employer must cover all employees over age 21 who meet a minimum income requirement and have worked at the company during any three of the preceding five years.

Tax features

  • The employer contribution to the account may not exceed the lesser of 25% of the employee's compensation or $52,000 for 2014 and $53,000 for 2015.
  • Employees who are part of the plan may also make annual IRA contributions of up to $5,500, $6,500 if age 50 or older, or 100% of their compensation, whichever is less for tax years 2014 and 2015. 
  • If you and your spouse are covered by a workplace retirement plan, please refer to our Traditional IRA tax deductibility table.

Investment minimums

  • The minimum investment to open a SEP-IRA at Janus is $500 with subsequent investments of $50 or more per month through an Automatic Investment Program (AIP). The minimum investment is $1,000 without an AIP.

Making withdrawals

  • Generally, distributions from a SEP-IRA are taxable.
  • No penalties on withdrawals after age 59½. Taking money out of your SEP-IRA prior to age 59½ may result in a 10% early withdrawal penalty and the money is taxed as current income.
  • Your SEP-IRAs investment earnings will be taxed at your current tax rate during the year money is withdrawn.
  • The tax-deductible contributions in your account will also be taxable at your current rate when money is (or assets are) withdrawn.
  • Any IRA contributions that were not tax-deductible should not be taxable when withdrawn from your account.
  • If you need to remove money prior to 59½, check to see if any of these exceptions to the penalty apply.

Required minimum distributions

  • You must begin removing money from your account by April 1st of the year after the year you reach age 70½.
  • Failing to take the minimum distribution will result in a 50% penalty tax on the amount you should have withdrawn-and you still need to withdraw that amount and pay any income taxes due.
  • Learn more about Required Minimum Distributions (RMDs).

Get more information right here

The Janus Universal IRA Disclosure Statement and Custodial Agreement provides more complete details about IRA accounts at Janus.

For additional information regarding a SEP-IRA, please visit www.irs.gov or consult with a tax adviser.

Please consider the charges, risks, expenses and investment objectives carefully before investing. Please see a prospectus , or if available, a summary prospectus containing this and other information. Read it carefully before you invest or send money.

A IRA should be considered a long-term investment. IRAs generally have expenses and account fees, which may impact the value of the account. Non-qualified withdrawals may be subject to taxes and penalties. Maximum contributions are subject to eligibility requirements. Depending on your eligibility, you may not be able to contribute the maximum amount. For more detailed information about taxes, consult IRS Publication 590 or your tax adviser regarding your personal circumstance.

With certain limited exceptions, the funds are generally available only to shareholders residing in the United States and employees of Janus or its affiliates. For purposes of this policy, the Funds require that a shareholder and/or entity be a US citizen residing in the United States or a U.S. Territory (including overseas U.S. military or diplomatic addresses) or a resident alien residing in the United States or a U.S. Territory with a valid U.S. Taxpayer Identification Number to open an account with the Fund. Nothing on this website should be considered a solicitation to buy or an offer to sell shares of any Janus fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.

If you are a non-US citizen or non-US resident, please see the international funds section of this site.

Tax information contained herein is not intended or written to be used, and it cannot be used by taxpayers for the purposes of avoiding penalties that may be imposed on taxpayers. Such tax information and any estate planning information is general in nature, is provided for informational and educational purposes only, and should not be construed as legal or tax advice.

Janus Distributors LLC