What type of retirement plan allows an employer to contribute to employees' IRAs without typical reporting requirements?

The SEP (Simplified Employee Pension) Plan is designed to allow employers to contribute to their employees' individual retirement accounts (IRAs) with simplified requirements compared to other retirement plans. One of the significant advantages of a SEP plan is that it features minimal administrative burdens, which means employers are not required to file complex annual reports that other retirement plans typically require.

Employers can contribute to an employee's IRA without needing to adhere to the rigorous compliance and reporting obligations associated with plans like 401(k) plans. This makes the SEP an attractive option for small businesses or self-employed individuals looking to provide retirement benefits without the complexity of traditional pension plans or 401(k) arrangements.

In contrast, options like the 401(k) plan involve more extensive reporting and compliance requirements due to their structure and regulations, while traditional and Roth IRAs primarily focus on individual contributions rather than employer-sponsored contributions. The simplicity of the SEP plan's design aligns it directly with providing a straightforward way to help employees save for retirement without the additional administrative complexities.