Salary reduction simplified employee pension plan (SARSEP) is a tax-deferred retirement savings plan similar to a 401(k). SARSEPs were created before 1997 and are no longer available for new enrollments. Employees hired in 1996 or before are eligible to participate in a company’s SARSEP. Learn more about SARSEP contributions limits from the IRS.

Note: SARSEPs are not managed by Gusto. You can add the benefit to your Gusto account for payroll purposes, and any deductions will be left in your company bank account to be moved externally.