There are certain rules governing the contribution process to SEP IRA. First of all, you as the business owner, are not obligated to make contributions every year. But if you make contributions, they must be based on contribution percentage to retirement accounts and must not discriminate in favor of highly compensated employees. When you contribute, you must contribute to the SEP IRAs of all participants who actually performed personal services during the year for which the contributions are made, even employees who die or terminate employment before the contributions are made. The contributions you make under a SEP are treated as if made to a qualified pension, stock bonus, profit-sharing, or annuity plan.