SEP Plan

Definition

A retirement program for self-employed people or owners of companies with less than 25 employees, allowing them to defer taxes on investments intended for retirement. This plan allows employers to contribute on behalf of eligible employees, and all contributions are tax-deductible as a business expense and can be integrated with Social Security contributions. In addition, there is no minimum contribution requirement.

Use SEP Plan in a sentence

If you are self-employed, or own a business with less than 25 employees, you should consider a SEP Plan for retirement.

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Contributing to her SEP Plan since the beginning of her business, Katherine was enthusiastically ready and prepared to retire the following year.

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For many self-employed individuals and employees of small businesses the SEP Plan has many far superior advantages to other retirement plans that don't have the same tax structure.

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sentiment separate account