### Question
How is the "simplified employee pension" defined?


### Answer
The term **simplified employee pension** is defined in *26 U.S.C. § 408* as follows -

> an individual retirement account or individual retirement annuity—


(A) with respect to which the requirements of paragraphs (2), (3), (4), and (5) of this subsection are met, and


(B) if such account or annuity is part of a top-heavy plan (as defined in section 416), with respect to which the requirements of section 416(c)(2) are met

#### Citation:
  - *26 U.S.C. § 408*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter D-Deferred Compensation, Etc. > PART I-PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC. > Subpart A-General Rule**

