SEP IRA

RetirementGlossary term

Definition

Simplified Employee Pension IRA designed for self-employed individuals and small business owners. Allows higher contribution limits than traditional IRAs, up to 25% of compensation.

Related terms

Traditional IRAA retirement account with tax-deductible contributions (if eligible) and tax-deferred growth. Withdrawals in retirement are taxed as ordinary income. RMDs required at age 73.

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