Azzad Mutual Funds

Ethical Wrap Program

Download Important Information

Prospectus

Wrap Brochure

Minimum to open

$500

$10,000*

Download SEP IRA Application

Application

Application

Eligibility

Any business or sole-proprietor who earns self-employed income by providing a service, either full-time or part-time (even if you are already covered by a retirement plan at your full-time job).

Contribution limit

For 2008, you can contribute to an employee's SEP and deduct up to the lesser of 1.) 25% of an employee's compensation or 20% for yourself if you're a self-employed individual contributing to your own SEP or 2.) $46,000 ($49K for 2009), you may consider up to $230,000 ($245K for 2009) in compensation. For your contribution limit, use our SEP IRA Contribution Calculator.

Funding requirements

Only employer contributions allowed. Employer must contribute for all eligible employees; including those terminated during the year. No annual funding requirement.

Deadline

You have until your business's federal income tax return (including extensions) to set up and contribute to a SEP.

Contributions

Tax-deductible

Earnings

Grow tax-deferred (until withdrawn)

Withdrawals after age 59½

Withdrawals are taxable income in the year received.

Withdrawals before age 59½

10% early withdrawal penalty before age 59½ (and does not meet one of the early withdrawal exceptions). Withdrawals will be taxed. Penalty-free withdrawals permitted before age 59½ for first-time home purchase up to $10,000, higher education expenses, in event of disability or death.

Required withdrawals at age 70½

You must take out what are known as required minimum distributions from your SEP when you reach age 70½. 

1. Simple to establish & maintain
2. Substantial contribution limits
3. Do not need to fund plan each year
4. Pretax dollars grow tax deferred

1. Must include all eligible employees 
2. Employees are 100% vested
3. No salary deferral contributions allowed