What is an SEP?
The Bankrate.com financial term of the day is: "SEP."
Though it might sound like some kind of bacterial infection, "SEP" is actually a type of retirement plan. SEP is an acronym that stands for "Simplified Employee Pension." It's similar to an individual retirement account, or IRA, though it's geared toward self-employed people and their employees. And here's another difference: An IRA is established by the individual, but an SEP is set up by the employer.
An SEP can be a good step toward retirement planning for the self-employed and their workers.
For help setting yourself up for a comfortable retirement, visit the Retirement section at Bankrate.com.