[S029b]

SEP--simplified employee pension

A type of retirement plan that was designed for small businesses. It is easier to administer than other plans because a minimal amount of paperwork is required. In this plan, an employer makes contributions to the employees IRA. In one form of SEP call SEP-IRA, the contributions are limited to 15% of the employee's salary up to a specified cap.

Copyright: The Rough Notes Company, Inc., 1998, All Rights Reserved. 3040100

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