Simplified Employee Pension Plan
About Simplified Employee Pension Plan:
The Simplified Employee Pension (SEP) Plan is a type of pension plan to which an employer may contribute an amount not to exceed the smaller of 15% of compensation or $30,000 per individual. Former IRC (check if this IRC provision is current here) §219(b).
See the Simplified Employee Pension (SEP) in the American legal encyclopedia.
Description and Definition of Simplified Employee Pension Plan (SEP)
An employer retirement plan similar to an Individual Retirement Arrangement (IRA) for self-employed individuals and their employees. Salary reduction contributions may be allowed for plans of small employers.
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