The term SEP IRA stands for Simplified Employee Pension Individual Retirement Account. It is a retirement plan that is established by the employer or employee.

A simplified employee pension plan is a plan for business owners to easily contribute toward their employees retirement as well as their own. Any contributions can be put into an individual retirement account or annuity for each employee.

Simplified Employee Pension (SEP) plans are for companies that have less than 100 employees. SEP plans provide retirement benefits for the business owners and their employees.

A SEP IRA is a Simplified Employee Pension Individual Retirement Account for the self-employed with advantages and and challenges for you, and its something you should look into.

If you work within a hospital or other large institution, you may have 401(k) benefits. Self-employed psychologists could invest in Simplified Employee Pension Plan (SEP) IRA retirement plans.