Simplified Employee Pension
A Simplified Employee Pension (SEP-IRA) is a traditional IRA retirement plan set up by an employer for a firm's employees. Only the employer contributes to the plan, but a self-employed individual is considered the employer for these purposes.
An employer may contribute up to the lesser of 25% of an employee's compensation or $49,000 (2010 amount) annually to each employee's IRA. The compensation and dollar contribution limits are indexed to inflation.
Related Fool Articles
Related Community Blogs
Recent Mentions on Fool.com
- 5 Frightening Retirement Statistics That Demonstrate Baby Boomers Are in Serious Trouble
- Will Your 401(k) Be Enough For Your Retirement?
- 4 Ways to Sabotage Your Chance of an Early Retirement
- 15 Wise Moves to Make With Your Enormous Tax Refund
- 3 Ways You Can Trick Yourself Into Saving More Money
- 5 Perfectly Legal Ways You Could Use Your Retirement Savings Early