If you’re a small business owner or self employed, a Simplified Employee Pension Plan (SEP) may help you get the tax-deferred benefit you need to grow your retirement savings.
Individuals who are eligible to establish a SEP and have eligible employees establish SEP IRAs include:
SEP contributions must be made by the employer.
Employers may contribute until the business tax filing deadline for the year, including extensions.
Catch-up contributions are not allowed with the exception of IRAs that hold the SEP contributions if the SEP IRA documents allow.
Contributions are tax deferred to employees and tax deductible as a business expense.
The distribution rules for SEP assets are similar to those of a Traditional IRA.