What is a SEP?
A SEP is an abbreviation for a Simplified Employee Pension IRA. A retirement plan that an employer or self-employed individuals can establish. The employer is allowed a tax deduction for contributions made to the SEP plan and makes contributions to each eligible employee's SEP IRA on a discretionary basis. Contributions to SEP IRAs are immediately 100% vested, and the IRA owner directs the investments.
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