A Simplified Employee Pension (SEP) IRA provides business owners with a simplified method to contribute toward their employees’ retirement as well as their own retirement savings. Contributions are made to an Individual Retirement Account (IRA) set up for each plan participant (a SEP-IRA). A SEP-IRA account is a Traditional IRA and follows the same investment, distribution, and rollover rules as Traditional IRAs. Employers and employees can make both SEP IRA and Traditional IRA contributions to the same account.