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Simplified Employee Pension - SEP
What does it mean?
A type of retirement plan that an employer can establish, including self-employed individuals. The employer is allowed a tax deduction for contributions made to the SEP Plan. The employer makes contributions to each eligible employee's SEP IRA on a discretionary basis.
In Other Words...
Contributions to SEP IRAs are immediately 100% vested, and the IRA owner directs the investments.
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Related Terms
IRA | Roth IRA
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