---
title: What is a SEP IRA account?
description: A SEP IRA is an employer-sponsored retirement plan that allows tax-deductible contributions made by the employer, subject to IRS eligibility rules and annual limits.
---

[Skip to content](https://knowledge-base.lime.co/migration/knowledge/what-is-a-sep-ira-account#main-content)

English

Show submenu for translations

![Logo colors on white-2](https://knowledge-base.lime.co/hs-fs/hubfs/Logo%20colors%20on%20white-2.png?width=374&height=125&name=Logo%20colors%20on%20white-2.png)

Open main navigation

Close main navigation

- English
  
  Show submenu for translations
- [Go to https://lime.co](https://lime.co/)

[Go to https://lime.co](https://lime.co/)

 Hello, how can we help you?

- There are no suggestions because the search field is empty.

1. [Help Center](https://knowledge-base.lime.co/migration/knowledge?hsLang=en)
2. [Account Types](https://knowledge-base.lime.co/migration/knowledge/account-types?hsLang=en)

# What is a SEP IRA account?

A simplified employee pension (SEP) is established by an employer or a self-employed person. The employer is allowed a tax deduction for contributions to each eligible employee’s plan on a discretionary basis. Eligibility requirements for contributors include:

- Has reached age 21
- Has worked for the employer in at least 3 of the last 5 years
- Received at least $750 in compensation for 2023 and for 2024 ($650 in compensation for 2021 and for 2022 from the employer during the year and $600 for 2019 and for 2020

The SEP IRA allows employers to skip contributions during years when business is down. Contributions made by employers are limited annually to the smaller of $69,000 for 2024 or 25% of compensation.

[For more information, see the IRS website on SEP accounts.](https://www.irs.gov/retirement-plans/plan-sponsor/simplified-employee-pension-plan-sep)

- [New Account Information: Lime Trader](https://knowledge-base.lime.co/migration/knowledge/new-account-information-lime-trader?hsLang=en)
- [Account Types](https://knowledge-base.lime.co/migration/knowledge/account-types?hsLang=en)
- [General Questions](https://knowledge-base.lime.co/migration/knowledge/general-questions?hsLang=en)
- [Plan Requirements and Minimums](https://knowledge-base.lime.co/migration/knowledge/plan-requirements-and-minimums?hsLang=en)
- [Account Funding: Lime Trader](https://knowledge-base.lime.co/migration/knowledge/account-funding-lime-trader?hsLang=en)
- [Order Types and Securities](https://knowledge-base.lime.co/migration/knowledge/order-types-and-securities?hsLang=en)
- [Options FAQs](https://knowledge-base.lime.co/migration/knowledge/options-faqs?hsLang=en)
- [Commissions & Fees FAQs](https://knowledge-base.lime.co/migration/knowledge/commissions-fees-faqs?hsLang=en)
- [Margin FAQs](https://knowledge-base.lime.co/migration/knowledge/margin-faqs?hsLang=en)
- [Day Trading FAQs](https://knowledge-base.lime.co/migration/knowledge/day-trading-faqs?hsLang=en)
- [IRA FAQs](https://knowledge-base.lime.co/migration/knowledge/ira-faqs?hsLang=en)
- [Tax FAQs](https://knowledge-base.lime.co/migration/knowledge/tax-faqs?hsLang=en)
- [Account Maintenance](https://knowledge-base.lime.co/migration/knowledge/account-maintenance?hsLang=en)
- [Contact Information FAQs](https://knowledge-base.lime.co/migration/knowledge/contact-information-faqs?hsLang=en)

[![Chill listening crop-3](https://knowledge-base.lime.co/hs-fs/hubfs/lime%20logo%20no%20bckgrd.png?width=69&height=24&name=lime%20logo%20no%20bckgrd.png "Chill listening crop-3")](https://lime.co)

Lime Financial Help Center

Copyright © 2026, Lime Trading Corp.