A Simplified Employee Pension, or SEP IRA, is a tax-deferred retirement plan available to small businesses of any size. Like the SIMPLE IRA, a SEP is very easy to setup using a prototype plan from a bank or financial institution and completing a single IRS form.
SEPs are funded entirely by the employer. Annual contributions can vary depending on business cash flow and must be made by the time you file your federal income tax return.
If you set up a SEP IRA, all employees must be included and all must receive equal contributions as a percentage of salary. Because of this requirement, SEPs are often used by sole proprietors or businesses with just one or two key employees.

Game Plan

For details on establishing a SEP, along with rules on participation, compensation, contributions, distributions, and more, review these SEP plan FAQs from the IRS.
Need Business Insurance?

Need Business Insurance?

For more than 200 years businesses have trusted The Hartford. We can help you get the right coverage with an online quote.
The content displayed is for information only and does not constitute an endorsement by, or represent the view of, The Hartford.
Find out more information about third party resources