What is a SEP IRA?- SEP IRAs are tax-advantaged retirement plans that any employer can open for a business of any size — even a business with just one employee. Through this IRA, employers can make contributions into a traditional IRA in each employee’s name, calculated as a percentage of the salary drawn.

If you’re self-employed, you can use an SEP IRA to contribute as much as you want each year in your own name – as long as it’s within the contribution limits for that year.