Simplified Employee Pension - SEP (Simplified Employee Pension IRA)


DEFINITION of 'Simplified Employee Pension - SEP (Simplified Employee Pension IRA)'

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.

  1. Joint-Life Payout

    One of two options normally available for retirees to choose ...
  2. IRA Plan

    A plan that individuals may establish to arrange and plan for ...
  3. Roth IRA

    An individual retirement plan that bears many similarities to ...
  4. 408(k) Plan

    A plan set up by an employer to help employees fund their retirement. ...
  5. Saver's Tax Credit

    A non-refundable tax credit available to lower income individuals ...
  6. Individual Retirement Account - ...

    An investing tool used by individuals to earn and earmark funds ...
Related Articles
  1. Taxes

    Tax-Saving Advice For IRA Holders

    Be informed about benefits and deductions that may apply to you and avoid costly mistakes on your return.
  2. Savings

    Retirement Savings Plans For Kids

    It's never too early to save for the future - learn how your children can get started.
  3. Retirement

    Job Hunting: Higher Pay Vs. Better Benefits

    Focusing on salary may be a mistake. Find out which benefits have the highest long-run payoff.
  4. Entrepreneurship

    Plans The Small-Business Owner Can Establish

    Don't hesitate to adopt a smart plan for you and your employees.
  5. Professionals

    How To Hire and Retain An Overqualified Candidate

    Understand how to hire and retain overqualified candidates by proactively seeking them out, discerning their motivations and then offering what they want.
  6. Retirement

    Is the New myRA Plan Right for You?

    The new myRA accounts seem to deliver on their promise of being “simple, safe and affordable.” Just be prepared for paltry annual returns.
  7. Credit & Loans

    Should I Use My IRA to Pay Off My Credit Cards?

    Cashing in an IRA to deal with outstanding credit card balances may not be the best way, but sometimes it's the best available way. Here's how.
  8. Investing Basics

    Fee-Only Financial Advisors: What You Need To Know

    Are you considering hiring a fee-only financial advisor or one who is compensated via commissions? Read this first.
  9. Retirement

    How Much Money Do You Need to Retire at 56?

    Who wouldn't want to retire early and enjoy the good life? The question is, "How much will it cost?" Here's a quick and dirty way to get an answer.
  10. Retirement

    The Best Strategies to Maximize Your Roth IRA

    If a Roth IRA makes sense for you, here are ways to build the biggest nest egg possible with it.
  1. What are the Simplified Employee Pension (SEP) IRA contribution limits?

    A simplified employee pension IRA, called SEP IRA for short, is a retirement plan that allows business owners to contribute ... Read Full Answer >>
  2. What are the main differences between a Simplified Employee Pension (SEP) IRA and ...

    A SEP IRA allows employers a simplified method to contribute toward employees' and their own retirement. A SIMPLE IRA helps ... Read Full Answer >>
  3. Who is eligible to obtain a Simplified Employee Pension (SEP) IRA?

    An individual is eligible for a simplified employee pension individual retirement account (SEP IRA) if his or her employer ... Read Full Answer >>
  4. Is a Simplified Employee Pension (SEP) IRA tax deductible?

    Payments that you make to a Simplified Employee Pension (SEP) IRA are tax deductible. However, there is a maximum limit that ... Read Full Answer >>
  5. When are Simplified Employee Pension (SEP) IRA contributions due?

    A SEP IRA, also known as a simplified employee pension plan, is an investment vehicle that allows business owners to contribute ... Read Full Answer >>
  6. What are the main differences between a Simplified Employee Pension (SEP) IRA and ...

    A simplified employee pension IRA is a type of traditional IRA that is designed for self-employed individuals or small business ... Read Full Answer >>
  7. How do I set up a 408(k) plan in my business?

    To set up a 408(k) retirement plan, you must first ensure that all eligible employees own an individual IRA account. These ... Read Full Answer >>
  8. Is a 408 (k) the same as a Simplified Employee Pension (SEP)?

    A 408 (k) is not the same as a Simplified Employee Pension (SEP). The SEP plan is a retirement plan that allows employers ... Read Full Answer >>
  9. Can I roll my SEP IRA into a Traditional IRA or should I convert to a Roth?

    Technically, the SEP IRA and the Traditional IRA are the same type of account. The only difference is that the SEP IRA is ... Read Full Answer >>
  10. My company has three partners but plans to hire more this year. Would we be better ...

    It depends. The SBO-401(k) plan is suitable if the plan covers only the business owners - in this case, the partners in the ... Read Full Answer >>
  11. Is an employee eligible for an SEP if the plan has already been set up for other ...

    It depends. The employee should meet not only the service requirements, but the age and compensation requirements as well. ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Cyber Monday

    An expression used in online retailing to describe the Monday following U.S. Thanksgiving weekend. Cyber Monday is generally ...
  2. Bar Chart

    A style of chart used by some technical analysts, on which, as illustrated below, the top of the vertical line indicates ...
  3. Take A Bath

    A slang term referring to the situation of an investor who has experienced a large loss from an investment or speculative ...
  4. Black Friday

    1. A day of stock market catastrophe. Originally, September 24, 1869, was deemed Black Friday. The crash was sparked by gold ...
  5. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  6. Barefoot Pilgrim

    A slang term for an unsophisticated investor who loses all of his or her wealth by trading equities in the stock market. ...
Trading Center