Loading the player...

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.

RELATED TERMS
  1. Individual Retirement Account - ...

    An investing tool used by individuals to earn and earmark funds ...
  2. IRS Publication 560: Retirement ...

    A document published by the Internal Revenue Service (IRS) that ...
  3. Savings Incentive Match Plan For ...

    A retirement plan that may be established by employers, including ...
  4. SIMPLE IRA

    A retirement plan that can be used by most small businesses with ...
  5. IRA Plan

    A plan that individuals may establish to arrange and plan for ...
  6. IRS Publication 590: Individual ...

    A document published by the Internal Revenue Service (IRS) that ...
Related Articles
  1. Retirement

    SEP IRA Limits in 2016

    Discover the SEP IRA limits for 2016. Included is a summary, plans that would be ideal candidates for SEP IRAs, and contribution and distribution rules.
  2. Retirement

    Business Owners: How To Set Up An SEP IRA

    SEP IRAs are simple to set up and run, making them a popular choice for business owners.
  3. Financial Advisor

    SEP IRAs Tutorial

    Learn about the set-up, the contributions to and the distributions from this IRA-based plan to which employers may make tax-deductible contributions on behalf of eligible employees.
  4. Retirement

    Individual 401(k) vs SEP IRA: Deductions & Contributions

    If you are self-employed, here are the pros and cons of individual 401(k)s and SEP IRAs.
  5. Retirement

    Is a Vanguard SEP IRA Account Right for You?

    Learn about the SEP IRA offered by Vanguard and why it is one of the best SEP products available, including why it's a good fit for small business owners.
  6. Retirement

    Retirement Planning For The Self-Employed

    Recent studies show that most self-employed Americans are saving little, if anything, for retirement. But making an investment in yourself is worth it.
  7. Financial Advisor

    The Pros and Cons of a SEP Account in Today's Volatile Markets

    Discover why you don't have to worry about a volatile market's impact on your simplified employee pension plan. Learn to use your SEP to navigate the markets.
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 >>
Hot Definitions
  1. Hedge Fund

    An aggressively managed portfolio of investments that uses leveraged, long, short and derivative positions with the goal ...
  2. Financial Statements

    Records that outline the financial activities of a business, an individual or any other entity. Financial statements are ...
  3. Operating Cost

    Expenses associated with the maintenance and administration of a business on a day-to-day basis.
  4. Money Market

    A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. ...
  5. Block (Bitcoin Block)

    Blocks are files where data pertaining to the Bitcoin network is permanently recorded.
  6. Fintech

    Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century.
Trading Center