What do you think of SEP IRAs?

PRProPRPro subscriber Posts: 25
Hi Fellow Entrepreneurs,
I`d love to get your opinion of saving in a SEP-IRA vs. a traditional IRA as a sole proprietor. What are your thoughts?
Thanks,
Melanie

Comments

  • Will2008Will2008 subscriber Posts: 0
    Hello,
    A SEP IRA could allow you to contribute much more than a Traditional IRA, depending on your income.  If you have employees or plan on hiring employees in the future, a SEP IRA would require you to contribute a percentage equal to that of the percentage you contribute for your benefit.  For example, if you contribute 10% or your salary, you must contribute 10% of each full time employees salary for their benefit.  There are also administrative fees with a SEP that Traditional IRAs do not have.  If you would like further information, please contact me at [email protected].  Good luck in your business!
     
    Regards,
    Will
  • MrLiquidityMrLiquidity subscriber Posts: 2
    Melanie,
    I take a radically different approach when I advise entrepreneurs on personal financial planning matters.  I firmly believe that entrepreneurs have a wonderful ability to create and grow wealth.  As a result, I strongly recommend that business owners and entrepreneurs make use of non retirement vehicles that offer greater liquidity.  As an entrepreneur myself, I am willing to sacrifice tax deductions today so that I can have easy access to my money - even before age 59 1/2.  If you believe in your ability to grow your business, keeping your money more accessible all throughout your entrepreneurial career just might make more sense. 
    Saving money is important, but consider avoiding IRA`s and SEP`s and Solo 401(k)`s.  Other options include regular old brokerage accounts or even maximum funded life insurance policies.  I have built my practice on liquidity planning for entrepreneurs.  I have a resource site that you can check out if you would like: The Entrepreneur`s Dream Financial Plan: http://www.EDFPlan.com
    Read through some of the blogs and you will hear some stories that might get you thinking.  Let me know your thoughts if you have a moment.
    To your success!
    Cash is King!
  • PRProPRPro subscriber Posts: 25
    Thanks for all of your input everyone!
    Melanie
  • saravanansaravanan subscriber Posts: 389 Silver Level Member
    A SEP IRA (Simplified Employee Pension Individual is a qualified retirement plan designed for small business owners to provide retirement benefits for themselves and their employees.
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