Simplified Employee Pension (SEP)
A simplified employee pension (SEP) is a retirement plan in which the employer establishes and contributes to an IRA for each eligible employee; however, the annual contribution limits are substantially higher than a traditional IRA. These plans are available to any size business as well as to the self-employed. Simplified employee pension plans are popular with smaller employers because they are easy to set up and operate; they have low administrative costs; the amount of required paperwork is minimal; SEPs do not have the start-up costs and operating costs of conventional retirement plans; and there are no annual filing requirements for employers.
Eligible Employees
A SEP plan must cover all qualifying employees ...
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