Any employer–sole proprietorship, partnership, corporation, and non-profit organization – with one or more employees can establish a SEP plan. Contributions an employer can make to an employee’s SEP-IRA cannot exceed the lesser of $55,000 or 25% of the employee’s compensation. Compensation is limited to $275,000 in 2018. There are not Roth versions of SEP IRAs. A SEP won’t prevent you from contributing to either a Roth IRA or a Traditional IRA. However, your ability to deduct the Traditional IRA contributions may be reduced depending on your income (MAGI) if you open a SEP IRA.