Simplified Employee Pension - SEP (Simplified Employee Pension IRA)

What is a 'Simplified Employee Pension - SEP (Simplified Employee Pension IRA)'

A simplified employee pension (SEP) is a retirement plan that an employer or self-employed individuals can establish. The employer is allowed a tax deduction for contributions made to the SEP plan and makes contributions to each eligible employee's SEP IRA on a discretionary basis.

BREAKING DOWN 'Simplified Employee Pension - SEP (Simplified Employee Pension IRA)'

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

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RELATED FAQS
  1. Is a Simplified Employee Pension (SEP) IRA tax deductible?

    Learn everything you need to know about your SEP IRA, including the benefits to employers and whether or not a SEP IRA is ... Read Answer >>
  2. How does a Simplified Employee Pension (SEP) plan work?

    Learn how small businesses and their employees benefit from a Simplified Employee Pension, or SEP, IRA, and discover how ... Read Answer >>
  3. How does a Simplified Employee Pension (SEP) IRA work?

    Learn about a Simplified Employer Pension, or SEP, IRA and how it works, who participates and what advantages it has over ... Read Answer >>
  4. What are the Simplified Employee Pension (SEP) IRA contribution limits?

    Discover the 2014 employers' SEP IRA eligible contribution limits for employees and those who are self-employed. These limits ... Read Answer >>
  5. Who is eligible to obtain a Simplified Employee Pension (SEP) IRA?

    Learn if an individual may contribute to a Simplified Employee Pension IRA when his or her employer offers a plan and how ... Read Answer >>
  6. When are Simplified Employee Pension (SEP) IRA contributions due?

    Read this article to learn more about the April 15 SEP IRA contribution deadline date and how tax-filing extensions affect ... Read Answer >>
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