(Money Manager) - A SARSEP was an employer-sponsored retirement plan limited to state and local governments. Private businesses could not establish SARSEP, and SARSEPs can no longer be established. 1997 was the final year SARSEPs were able to be established.

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(Money Manager) - A SEP IRA is a type of individual retirement account that has different tax rules than other types of IRA's. With a few exceptions, a SEP IRA is subject to the same rules as a Traditional IRA. One of the differences is that a SEP IRA is set up by an employer for employees, or for himself if he is self-employed. Traditional IRA's are not set up by employees. As a result, SEP IRA's have rules as to who is an eligible employee, employer contribution limits, and so forth. Self-employed individuals with no employees make up the bulk of those establishing this type of IRA, although some employers with employees do have SEP IRA's.

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