A Simplified Employee Pension IRA (SEP IRA) is a type of retirement account that allows small business owners and self-employed individuals to contribute tax-deductible funds on behalf of themselves and their eligible employees.

SEP IRAs are typically established by the employer, and contributions are made directly to the employee's SEP IRA account. The contribution limit for a SEP IRA is higher than that of a Traditional or Roth IRA, and contributions are tax-deductible for the employer. Investments grow tax-deferred until retirement when distributions are taxed as income.