What is a SEP IRA?
A SEP IRA, or Simplified Employee Pension Plan, is one of the many retirement plans for self-employed individuals and small business owners save for their retirements.
With a SEP IRA, you can contribute up to 25% of your income with a maximum contribution limit of $56,000 in 2019, up from $55,000 in 2018.
A SEP IRA is a traditional retirement account where contributions are tax deductible and your savings grows tax-deferred until withdrawn. Upon withdrawal, or conversion to a Roth IRA, you will pay taxes on the amount withdrawn or converted at your regular tax rate.
As a self-employed person, I don’t have access to a typical 401(k) Plan. However, with some research, I was able to replace my old 401(k) with something even better…a SEP IRA! A SEP IRA, or Simplified Employee Pension Plan, is one of the many retirement plans for self-employed individuals and small-business owners save for their … Read more