TurboTax FAQ
TurboTax FAQ
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What is a Simplified Employee Pension (SEP)?

A Simplified Employee Pension (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 cannot exceed the lesser of:
    • 25% of compensation paid during the year, or
    • $53,000 for 2016
  • Investment, distribution, and rollover rules are the same as traditional IRAs.