Common use of Simplified Employee Pension Clause in Contracts

Simplified Employee Pension. Defined A SEP is a retirement income arrangement. In this "elective" SEP, you may choose to defer compensation to your own Individual Retirement Account or Annuity ("XXX"). You may base these "elective deferrals" either on a salary reduction arrangement or on bonuses that, at your election, may be contributed to an XXX or received in cash. This type of elective SEP is available only to an employer with 25 or fewer eligible employees. Your employer must provide you with a copy of the SEP agreement containing eligibility requirements and a description of the basis upon which contributions may be made. All amounts contributed to your XXX belong to you, even after you quit working for your employer.