SEP - Simplified Employee Pension Plan

What is a SEP? It's a Simplified Employee Pension Plan.

This is a simple retirement plan where you set up an IRA and the employer (and yourself) contributes towards the fund. SEPs ended in 1997 and employers can no longer start them.

The maximum the employer can contribute is 25% of earnings ($40,000 max per year).

More retirement plans to check out:

• Defined Benefit Plans
• Defined Contribution Plans
• 401K Retirement Investment