SEP IRA (Simplified Employee Pension IRA)

A SEP IRA (Simplified Employee Pension IRA) is a retirement savings plan primarily designed for self-employed individuals and small business owners. It allows employers to contribute money directly to their employees’ retirement accounts, including their own if they are self-employed. Contributions are tax-deferred, meaning you don’t pay taxes on the money until you withdraw it in retirement. The plan is simple to set up and maintain, with high contribution limits that can vary each year, making it a flexible and tax-efficient way to save for retirement.