TurboTax defines a Simplified Employee Pension (SEP) as a "(SEP) or (SEP-IRA) provides business owners with a simplified method to contribute toward their employees' retirement as well as their own.
Contributions are made to an IRA set up for each plan participant and can't be more than the lesser of:
- 25% of compensation paid during the year
- $69,000 for 2024 ($66,000 for 2023)
Investment, distribution, and rollover rules are the same as traditional IRAs." A Simple IRA will allow both employer and employee contributions.
The SEP IRA will only allow employer contributions. If you have a SIMPLE or a SEP the box will be checked on your 1099-R for IRA/SEP/SIMPLE.
For more information, see the link below:
@johnepperson
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
