SEP Simplified Employee Pension 

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Contribute up to 25% of your net earnings from self-employment (excluding your own contribution), up to $71,000 for 2026. This limit is based on the first $355,000 of compensation.

 

Plan Highlights:

• Available to businesses of any size

• Simple to establish and maintain

• No annual filing requirements — minimal administrative burden

• Flexible contribution levels suited to variable cash flow

• Mandatory equal contribution percentages for all eligible employees

• Immediate 100% employee vesting

• Employer-funded contributions only (no employee deferrals)

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Employee Eligibility:

• Age 21 or older

• Worked for the employer in three of the past five years

• Earned at least $750 in 2026 compensation

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Additional Details:

• No catch-up contributions permitted for employees age 50 or older

• 2026 contributions may be made until April 15, 2027 (or the employer’s tax-filing deadline, including extensions)