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SEP Simplified Employee Pension 

Contribute as much as 25% of your net earnings from self-employment (not including contributions for yourself), up to $69,000 for 2024

Available to any size business
Easy to set up and operate
No filing requirement for the employer - low administrative costs
Flexible annual contributions – good plan if cash flow is an issue
Employer must contribute equally for all eligible employees
Employee is always 100% vested
Only the employer contributes to these SEP-IRAs that are set up for each eligible employee

An eligible employee is an individual (including a self-employed individual) who meets all the following requirements:

  • Has reached age 21

  • Has worked for the employer in at least 3 of the last 5 years

  • Received at least $750 in compensation for 2024 from the employer during the year


Contribution limits that an employer can make to an employee's SEP-IRA cannot exceed the lesser of:

1.    25% of the employee's compensation (in 2024 contributions must be based on the first $345,000 of compensation), or
2.    $69,000 for 2024 - over 50 catch-up contributions are not permitted in SEP plans


frequently asked questions
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