Type of Defined Contibution Plan that takes the form of an IRA for all eligible employees. Employer contributions only. (Simplified Employee Pension Plans IRA)
A type of retirement plan with individual IRA accounts for each participant. The employer funds the retirement benefit by making contributions that are remitted directly to the IRA accounts. Employers must contribute a uniform percentage of pay for each employee. Employer contributions are limited to the lesser of 25% of an employee's annual salary, or an annually adjusted maximum ($40,000 in year 2003). All contributions are immediately 100% vested.
A Simplified Employee Pension (SEP) is essentially a group of IRAs paid for by the employer. This pension plan allows employers to contribute to SEP-IRA plans, on behalf of their employees, an amount greater than the Traditional IRA limitations. The main advantage of the SEP-IRA to the employer is that the administrative burdens are few and the plan is simple to install.
A type of IRA that permits but does not require a small business to contribute to its employees' retirement saving plan accounts.
an employer sponsored retirement plan mostly used by sole proprietorships, partnerships, and small corporations
a retirement plan option for those who are self-employed or who have small businesses
a Simplified Employee Pension-Individual Retirement Account
a simplified employee pension plan that uses an IRA format
a tax-deferred retirement plan used by small businesses that do not have any other retirement plan
a type of qualified retirement plan for small businesses that is funded by the employer or self employed individual
a written arrangement under which an employer sets up individual retirement accounts for its employees
A retirement plan in which employers can establish IRAs for groups of employees.
A traditional IRA designated to receive contributions under a simplified retirement arrangement set up by an employer for the firm's employees. An employer may contribute up to $30,000 or 15% of an employee's compensation annually to each employee's SEP-IRA. See our Retirement Plan Primer for a more complete discussion of SEPs.
Simplified Employee Pension IRA. An individual retirement account set up by a small business employer or by a self-employed person, providing certain requirements are met and there is no 401(k) plan in place. A SEP-IRA is funded by contributions from the employer for his/her own benefit and of any employees'.
