Simplified Employee Pension IRA (SEP IRA)

SEP IRAs

A Simplified Employee Pension IRA (SEP IRA) is one of the easiest workplace retirement plans to set up and maintain for any business.

What is a SEP IRA retirement plan?

A Simplified Employee Pension IRA (SEP IRA) plan is a type of workplace retirement plan that allows an employer to contribute tax-deductible dollars to the owner's and the employee's retirement account. SEP IRA plans are funded solely by employer contributions (employee deferrals are not permitted); each eligible employee generally receives the same percentage of their individual compensation amount, and that percentage is at the discretion of the employer from year to year.

Benefits of SEP IRAs

SEP IRA plans offer a range of benefits, including:

• SEP IRAs are relatively simple and inexpensive
• Plans do not require special IRS filings or administration
• SEP IRA contributions are tax-deductible to the employer
• Annual contributions to the plan are not mandatory and may range from 0%-25%

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