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individual 401k vs SEP

doledole subscriber Posts: 3
edited October 2009 in Business Planning
Hello StartupNation, I am starting a new business for IT contracting. What i am trying to figure out is what type of retirement plan should i get? right now i am thinking of starting an individual 401K plan with scottrade.com.. anyone done this before and have any ideas for me? i will share with you guys how it works out for me once i do it. Thanks!
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Comments

  • balogabaloga subscriber Posts: 0
    Initially, you are better off starting with an individual K plan. With a SEP, you will be limited to an overall percentage of your income. With a 401k, you can effectively put away a greater percentage of you income after you put in your employee portion, your employer match and a profit share component.

    Ed Baloga, CPA / MBA Principal CFO Baloga Associates www.twitter.com/edbaloga
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  • doledole subscriber Posts: 3
    Thanks baloga! thats the route I am going down on... I wonder how scottrade is vis-a-vis some one like Vanguard. Of course, I expect that I will possibly do a lot of self-management with scottrade, but i am totally game for it. Thanks for your ideas.
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