A retirement plan which assumes the likeness of an IRA and is available to all qualified employees.
This type of pension allows you to make contributions to your own retirement plan if you're self-employed, and to your employees' plan. You can make contributions if you're the head of an S-corporation or a C-corporation, as well.
An Individual Retirement Arrangement (IRA) with specific participation rules, available to some smaller employers.
A tax-deferred retirement savings plan for self-employed individuals and small business owners.
A simplified employee pension is a written arrangement or program that allows an employer to contribute tax-deductible dollars toward an employee's retirement. A SEP may be established by a corporate or noncorporate employer. From an individual's perspective, a SEP has the administrative simplicity of an IRA, but also allows the employer to make contributions on the employee's behalf in addition to the employer's annual contribution limit.
An employer-sponsored retirement plan that allows employers, including sole proprietors, to make SEP contributions for themselves and their eligible employees.
In a SEP, the employer directly funds IRAs or annuities that are established by or on behalf of the employees.
A retirement program for self-employed people allowing them to defer taxes on investments intended for retirement
An Individual Retirement Arrangement (IRA) with special participation requirements that is available to certain small employers.
Any traditional IRA designated to receive employer contributions under a Simplified Employee Pension (SEP) agreement set up by the employer. An employer may contribute up to $30,000 or 15% of an employee's compensation annually to each employee's IRA.
An individual retirement account arrangement for covered employees, subject to specific rules on contribution and eligibility. First authorized in 1979, SEPs simplify the administration and reduce the paperwork associated with many other types of pension plans. For this reason, they are especially attractive to smaller employers.
A retirement program for which the administrative costs are lower than for some other nonsimplified (complicated) plans. A business of any size or a self- employed individual may create an SEP.
An alternative to a Keogh plan that allows employers who have not established qualified retirement plans to contribute to their employee's Individual Retirement Accounts.
Pension plan in which the employer contributes to an Individual Retirement Account for each of its employees. The employee is vested immediately and pays no taxes on the employer's contributions. The contributions and all earnings on funds in the plan are tax-deferred until withdrawn.
A qualified retirement plan in which each eligible employee opens an IRA and the sponsoring employer makes tax-deductible contributions on the employees' behalf. SEPs enjoy the tax benefits of other qualified plans but have relatively simple administrative rules.
An individual retirement account or annuity that permits an employer (or individual, if self-employed) to contribute each year to an IRA up to the lesser of 15% of compensation or $30,000 to all qualified plan participants.
An arrangement whereby an employer makes contributions to an employee's individual retirement account (IRA), or a self-employed person contributes to his own plan.
A Simplified Employee Pension plans (SEP) lets a self-employed person or business owner contribute up to 25% of annual earnings to a maximum of $44,000 per year for each eligible employee. Contributions are tax deductible and earnings growth is tax deferred.
An easily established retirement plan in which an employer makes contributions to your IRS.
a retirement plan for companies with fewer than 25 employees
In the United States, a pension plan in which an employer contributes money to an individual retirement account (IRA) for each employee covered by the plan. The IRA is owned by the employee, not the employer. A SEP is especially useful to employers who cannot afford the time or money needed to administer and maintain a more complicated pension plan. SEPs may also be used by self-employed persons.