Compared to other non-employer sponsored savings strategies or retirement accounts, an SEP IRA has a number of benefits:

• Employers can make contributions on behalf of all their employees
• From the moment contributions are placed into the account, employees are 100% vested
• Contributions are kept in a traditional IRA, under the SEP umbrella
• All contributions are tax-deductible for the employer
• Employees can enjoy the tax-advantaged benefits just like regular employees at larger corporations
• Investments still grow tax-deferred till you’re ready to start making withdrawals at retirement
• Withdrawals are taxable, but you should be in a lower tax bracket by then
• You can still make contributions to Roth and Traditional IRAs in addition to the SEP IRA