Which of these retirement plans can be started by an employee, even if another plan is in existence?

The correct choice is an IRA or Individual Retirement Account. This option is specifically designed to provide individuals with the ability to save for retirement on their own terms, separate from any employer-sponsored plans. An IRA allows an employee to contribute funds to their account regardless of whether they are participating in another retirement plan, such as a 401(k) or a pension plan.

One key feature of an IRA is its flexibility, as it can be established independently by the individual, which means employees can build additional retirement savings even if their employer already offers a different retirement option. This can be particularly beneficial for employees looking to enhance their retirement security.

While a 401(k) plan and a pension plan are typically established by employers and may have specific requirements regarding participation, a SEP plan (Simplified Employee Pension) is generally used by employers to make contributions on behalf of their employees, and is not primarily designed for individual participation like an IRA. Thus, utilizing an IRA offers an essential avenue for employees seeking to maximize their retirement savings independently of their employer's plan structures.