Sep

SEP is an acronym with several distinct meanings across fields. Two common uses are in finance and in social science research.

Simplified Employee Pension (SEP) IRA is a type of retirement plan designed for small businesses and self-employed individuals in the United States. Under a SEP, the employer makes contributions to traditional IRAs established for eligible employees. Employees do not contribute to a SEP in most cases. Contributions are generally tax-deductible to the employer and grow tax-deferred until withdrawal. Withdrawals in retirement are taxed as ordinary income, and early withdrawals may incur penalties. SEP plans tend to be simpler to administer than many other retirement plans because they require less annual testing and reporting. Contributions must be made for all eligible employees according to a uniform percentage of compensation, and the amount contributed is discretionary each year. There are annual limits set by law based on compensation, which affect how much can be contributed, not how much an individual employee can contribute.

Socioeconomic position (SEP) is a measure of an individual’s or group’s social and economic standing relative to others. It is commonly based on components such as education, income, and occupation, or on composite indices that combine these factors. SEP is used in public health, sociology, and economics to study health outcomes, access to resources, and social inequalities. It can be assessed at the individual level or at neighborhood or area levels. While SEP is a useful summary of social standing, it can be influenced by measurement choices and cultural context, and researchers often use it alongside other indicators of social determinants of health.