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
- 3 Easy Ways to Run Out of Money During Retirement
- The Smart Way to Double Your Money in Retirement
- 3 Figures You Need to Stay on Top of During Retirement
- Why NCUA Insurance Should Matter to You
- How Sweating the Small Stuff Can Help You Reach Your Financial Goals
- Why the Typical American Is More Confident About Retiring Richer