Simplified Employee Pension - SEP (Simplified Employee Pension IRA)

Simplified Employee Pension - SEP (Simplified Employee Pension IRA)

A type of retirement plan that an employer can establish, including self-employed individuals. The employer is allowed a tax deduction for contributions made to the SEP Plan. The employer makes contributions to each eligible employee's SEP IRA on a discretionary basis.

Notes:

Contributions to SEP IRAs are immediately 100% vested, and the IRA owner directs the investments.

See also: IRA, Roth IRA