Today’s tip will cover “What is a SEP IRA?”

A SEP IRA, is a Simplified Employee Pension Individual Retirement Account used by business owners to provide a simplified method to contribute to their employees’ retirement and their own retirement savings.  A SEP does not have the start-up and operating costs of a conventional retirement plan and allows for a contribution of up to 25 percent of each employee’s pay. This type of plan allows for flexible annual contributions and the employer must contribute for all eligible employees.   A SEP IRA account is a traditional IRA and follows the same investment, distribution and rollover rules as a traditional IRA.

There are several factors to consider if a SEP IRA is the best way for you to save for retirement. Feel free to contact me to see if a SEP IRA is right for you.  And remember to consult with your tax advisor for your specific tax related questions.

And remember to Savvy Up!!

Catherine Magaña is a CFP® or CERTIFIED FINANCIAL PLANNER ^™ in Carlsbad California.

If you would like to set up a free 30 minute financial assessment she can be reached at 760-692-5700, info@savvyup.com for private message or click on the following link to contact us directly savvyup.com/contact.

Sign up for our “Savvy Up Today!” newsletter by clicking on the following link to receive financial tips about investing, managing your money, planning for retirement and invites to upcoming events. Get Savvy about your Finances & Live your Life Empowered!

#SavvyUp