• Galia Gichon

Is a SEP IRA Right for You?

Updated: Jul 19, 2019

This question came in to me via Single Edition, a website I contribute to.

QUESTION: I recently launched my own business and have been told to set up a S.E.P IRA account. Can you explain what this is and why it is recommended for independent business consultants?

A SEP IRA is a retirement account for self-employed professionals and business owners. For 2008, you are eligible to contribute up to 25% of your adjusted gross income with a cap of $46,000. One of the great benefits of a SEP IRA is that the money goes in pre-tax, grows tax deferred and you are eligible to save much more than if you had a 401(k). It is important to note that the SEP IRA is just an account; you still have to pick investments (particularly mutual funds) for it. If you are just getting started, a Target Date Retirement Mutual Fund is a great place to start. Just pick one based on the year you would like to retire.

Check out "MY MONEY MATTERS" kit.

Boxed Set of Affirmation Cards, Instant Money Tips and Workbooklets Tools to Build Peace of Mind and Long-Term Wealth www.mymoneykit.com.

If you are not already a subscriber, I invite you to subscribe to my FREE weekly e-mail newsletter at DownToEarthFinance-On@zines.webvalence.com for smart tips to save more money and independent advice about mutual funds and retirement or or visit Down-to-Earth Finance.

0 views

© 2019 by Down to Earth Finance