The term "SEP" stands for Simplified Employee Pension.
Under a SEP, an IRA is set up by or for an employee to accept the employer’s
The SEP IRA is a retirement plan whereby an employer makes contributions on
behalf of their employees. SEP IRA are ideal for self-employed people and small
As the employer’s profit fluctuates from year to year, so
can the employer’s contributions to the plan.
The SEP is intended to be an attractive alternative to tax qualified
retirement plans which are subject to ERISA because a SEP plan is relatively
easy and inexpensive to establish and administer.
Individual Retirement Account
Back to the top of the page for SEP IRA