SIMPLIFIED EMPLOYEE PENSION (SEP) IRA:

SEP IRAs benefit self-employed individuals and small-business owners, and have a number of advantages over other retirement plans, including:

SEP IRAs are available if you have income from being self-employed either full- or part-time, or if you are an employee of someone who establishes a SEP IRA for their employees, including:

Contributions to a SEP IRA

All contributions made under a SEP IRA are employer contributions. An employee cannot defer a portion of his or her salary and contribute it to a SEP IRA. Employers may contribute up to 25% of an employee's compensation* ($53,000 per participant in 2015 and 2016, the highest limit allowed by law).

Withdrawals Prior to Age 59½

Withdrawals are subject to ordinary income tax and a 10% early withdrawal penalty may apply prior to age 59½. The IRS will waive this penalty** when distributions are used for:
* Maximum compensation on which contributions can be based is $225,000 for the 2007 plan year. For self-employed individuals, compensation is your net earnings from self-employment. For further clarification contact your tax advisor.