SEP-IRA

SEP- IRA:  Simplified Employee Pension-Individual Retirement Account.  This form of IRA can be used by self-employed people and small business owners to provide retirement benefits for themselves and their employees under certain circumstances.  There are no significant administration costs for a self-employed person with no employees.   Because SEP IRA’s are a type of IRA, these funds can be invested the same way as most other IRA’s.  However, the contribution limits are much higher than a Traditional IRA or Roth IRA.  The deadline for establishing the plan and making contributions is the filing deadline for the employer’s tax return, including extensions.