A SEP IRA, or Simplified Employee Pension Individual Retirement Account, is a retirement savings plan designed for self-employed individuals and small business owners. It allows employers to make tax-deductible contributions to their employees' retirement accounts, including their own, making it a flexible option for businesses of various sizes. Contributions to a SEP IRA are made by the employer, and the amount can vary each year, up to a certain limit. This plan is easy to set up and maintain, with minimal paperwork compared to other retirement plans, making it an attractive choice for those looking to save for retirement efficiently.