What Is a SEP-IRA?

A SEP-IRA (Simplified Employee Pension) is a retirement account for self-employed people and small business owners that allows much larger contributions than a regular IRA. For 2024, you can contribute up to 25% of net self-employment income, up to $69,000. Contributions are tax-deductible and reduce your AGI. They're easy to set up and maintain. If you have employees, you generally must contribute the same percentage for them as you do for yourself.