Simplified Employee Pension


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Simplified Employee Pension (SEP) plan

A pension plan in which both the employee and the employer contribute to an individual retirement account. Also available to the self-employed.

Simplified Employee Pension Plan

Also called a SEP IRA. A retirement plan designed for persons with self-employed income and their employees. It operates like an IRA: it has contribution limits and may be invested in securities. When an employer sets up an SEP, he/she creates a different account for each employee and puts a certain percentage of each person's income into these accounts. The percentage must be the same for the employer and all employees (although the dollar amounts will differ because of different levels of compensation). The employer makes all contributions, which are tax deductible for him/her; when the employee makes withdrawals upon retirement, the withdrawals are tax-free. SEPs may exist side-by-side with 401(k)s.

Simplified Employee Pension (SEP)

An arrangement under which an employer makes contributions to an employee's individual retirement account (IRA), or a self-employed person contributes to his own plan.
References in periodicals archive ?
1993)], the court held that ERISA does not preempt state exemptions for simplified employee pension (SEP) and IRA assets that are enacted pursuant to the express authority bestowed on states under the Bankruptcy Code.
If she gets a windfall from a book deal, all the proceeds should go to into her Simplified Employee Pension plan, Chapman said.
408(k)(2)(C) compensation amount for simplified employee pension plans remains unchanged, at $450.
A retirement plan might be funded by the firm--mine is--using a profit-sharing plan, simplified employee pension plan or simple contributions.
is self-employed, she contribute to a simplified employee pension (SEP-IRA).
Instead, you will need to learn about tax-deductible vehicles such as Keogh plans and simplified employee pension plans, as well as the traditional individual retirement accounts.
A simplified employee pension plan (SEP) is a means of creating tax deferred security similar to a qualified profit sharing plan in which an employer contributes on a nondiscriminatory basis to IRAs maintained by employees.
Simplified Employee Pension IRAs can be used two ways: By self-employed people, as well as for workers whose employer prefers to offer this type of retirement plan and avoid more complex compliance rules with other plans.
E[acute accent]JSCI clients include individuals, corporations, banks, thrift institutions, pension and profit sharing plans, Individual Retirement Accounts, Simplified Employee Pension accounts, trusts, estates, charitable organizations and other business entities.
If you had self-employment income in 2002, for instance, set tip a simplified employee pension (SEP) before you file your 2002 tax return, including extensions, and make deductible contributions.
Similar increases apply to 403(b) plans offered to teachers and employees of nonprofits; 457 plans, found mostly in state and local governments; and SAR-SEPs, a salary-reduction type of Simplified Employee Pension.
A simplified employee pension (SEP) defined in IRC section 408(k);

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