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Salary Reduction Simplified Employee Pension Plan (SARSEP) |
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Salary Reduction Simplified Employee Pension Plan (SARSEP)A low-cost, no-frills version of a 401(k) employee savings plan available to companies with 25 or fewer employees. It allows employees to make pretax contributions to their IRAs through salary reduction each year. The Small Business Job Protection Act of 1996 ../../finance-glossary/d SARSEPs with SIMPLE (Savings Incentive Match Plan for Employees) plans. Existing SARSEPs were allowed to add new participants, but new plans could not be formed after December 31, 1996.Salary Reduction Simplified Employee Pension Plan (SARSEP) Similar MatchesSimplified Employee Pension (SEP) planSimplified Employee Pension (SEP) planA pension plan in which both the employee and the employer contribute to an individual retirement account. Also available to the self-employed. Simplified employee pension planSimplified employee pension planA pension plan, set up by an employee, in which both employer and employee contribute to an Individual Retirement Account (IRA). Simplified defined contribution schemeSimplified defined contribution schemeSee: 'defined contribution pension plan' |
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