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 https://savvyup.com/contact .

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