Any employer may establish a SEP plan.
- May be established up to the tax-filing due date, including extensions
- Tax-deductible contributions are made by the employer on behalf of all eligible employees, and if self-employed, their own retirement
- All employees age 21 or older who have worked in at least three of the preceding five years receive a contribution
- Contributions are limited to 25% of compensation or $53,000
- Contributions are made directly to an employee's IRA
- General rules regarding Traditional IRAs apply