A Simplified Employee Pension (SEP) plan provides business owners with a simplified method to contribute toward their employees’ retirement, as well as their own retirement savings.
Retirement Glossary
S
SEP Plan
SIMPLE IRA
SIMPLE stands for Savings Incentive Match Plan for Employees. Perhaps the best way to describe the SIMPLE IRA plan is as the little brother of the more robust but more costly 401(k) plan. Much like the traditional 401(k) plan, the SIMPLE IRA Plan allows for both employer contributions as well as employee salary deferral contributions.
Social Security
A national benefit program funded by tax dollars to ensure economic security for those who can no longer work because of their age or a disability. Those who qualify for Social Security benefits receive monthly stipends based on their reported income.
Solo 401k
A version of a 401(k) available to solo-entrepreneurs that allows you to contribute to the plan using both your personal and business income, without subjecting your company to the requirements of ERISA. This plan is only available to small business owners with no employees other than themselves and their spouse.
