SEP (Simplified Employee Pension)
A SEP is an individual retirement account or individual retirement annuity (IRA) established and financed (wholly or in part) by an employer that meets specified requirements relating to employee participation, nondiscrimination, withdrawals, and the employer contribution allocation formula to avoid favoring officers, shareholders and highly compensated employees. SEP rules are intended to provide for simple administration, vesting and portability. SEP's can be established by corporations, unincorporated businesses and partnerships. IRA rules apply to early and late withdrawals, loans, or self-dealing.
