A written arrangement (a plan) that allows an employer to make contributions to an employee's retirement. Contributions can be made to an employee's individual retirement account or annuity (IRA).
Simplified Employee Pension Plans (SEPs) are tax favored plans that permit an employer to make contributions on behalf of employees to an employee's SEP-IRA account. It can be established by sole proprietorships, partnerships & corporations. SEPs are especially attractive to small business owners because they are simple to set up & maintain.
A retirement savings program designed for the self employed and is suitable for small businesses and sole proprietors. An employer contributes tax-deferred dollars to individual retirement accounts for employees.