A simplified employee pension (SEP) plan is a special type of individual retirement account (IRA) that is extremely popular among owners of small businesses and sole proprietors. If you are the owner of the business or its sole proprietor, you may contribute up to 15% of the salary you pay yourself. Your maximum annual contribution, however, is limited to $22,500. Remember that if you establish an SEP plan for yourself, you must offer a similar plan to your workers, and fund their plans with contributions of your own. For example, if you contribute 10% of your salary to your own plan, you must also contribute 10% of each worker''s salary to his or her individual plan.