A SEP is a simplified employee pension plan. SEPs may be established by sole proprietors, partnerships, or corporations. A SEP is easier to set up and administer than a Keogh. The IRS has model SEP forms so a small business owner can set up a SEP without help from a financial planner. As the employer, you make a tax-deductible contribution to an IRA established by the employee. This relieves you, as the employer, of managing the fund.

It is possible for someone to have a SEP or Keogh, an IRA, and a 401(k) or 403(b) from an employer. This provides you maximum tax-deferred savings possibilities.