Employee Benefits

SIMPLIFIED EMPLOYMENT PENSION (SEP)

Bank of Alaska SEP is a tax-deductible retirement fund for businesses that provides tax deferred benefits for employers and employees. Employers contribute up to 25% of an employee's total compensation. The compensation limit is determined by the IRS. Talk to your Bank of Alaska banker about this innovative pension program for your business.

SAVINGS INCENTIVE MATCH PLANS FOR EMPLOYEES (SIMPLE)

Bank of Alaska SIMPLE is an inexpensive retirement plan that a small business owner may set up, even if the business has employees other than the owner.

• Employees may elect to defer up to 100% of their compensation, but no more than a certain dollar amount per year based on age.
• Annual reporting to the IRS is not required from employers of SIMPLE IRA plans.
• Distributions from SIMPLE IRAs are taxed under rules generally applicable to Traditional IRA distributions.
• Distributions can be rolled over.

COVERDELL EDUCATION SAVINGS ACCOUNT

• Non-deductible contributions.
• Tax Free withdrawals/earnings.
• Convert to a new beneficiary.