If you’re a W-2 employee, your employer may choose to offer a SEP IRA as an alternative to a full employer-sponsored 401k plan. As an employee, you cannot make direct contributions to a SEP IRA, like you could with a 401k. A SEP IRA is like a simpler, more cost-effective alternative to offering a 401k plan. Smaller companies […]
OVERVIEW A SEP IRA has a few unique contribution rules if you have employees in your business. Only an employer can contribute to a SEP IRA; employees cannot contribute to their own accounts. When you make employer contributions, you’re obligated to make equal percentage contributions to every eligible employee’s accounts. What is the equal percentage […]
Contributions to a SEP IRA are made with income that hasn’t been taxed yet. You get a tax deduction each year you contribute and investments in your account grow tax-deferred until retirement. A SEP IRA has similar withdrawal rules as a traditional IRA. Once you contribute to your account, you cannot withdraw from it until you reach the […]
OVERVIEW A SEP IRA (Simplified Employee Pension) is a tax-deferred retirement account for business owners and self-employed individuals. Contribution rules are different for a SEP IRA than other IRAs like the traditional and Roth IRAs. SEP IRA contribution limit Employers can contribute up to 25% of their compensation up to $61,000 for 2022 and $66,000 […]
With a traditional IRA, your contributions are deducted from your taxable income, and investments in your account get tax-deferred until retirement. The IRS doesn’t let you take money out of a traditional IRA without penalties until you reach the age of 59½. You’re also required to take minimum distributions from your account once you reach the […]
OVERVIEW What is a traditional IRA? A traditional IRA is a type of individual retirement account (IRA) where you contribute with pre-tax dollars and get a tax deduction every year you contribute to your account. Your investments grow in your account tax-deferred until retirement. When you take withdrawals at the eligible withdrawal age of 59½, […]
OVERVIEW What is an IRA? IRA stands for Individual Retirement Arrangement, and is a tax-advantaged investment account available for anyone with earned income. They’re especially useful for people who don’t have access to an employer-sponsored 401k plan at work. There are many different types of IRAs, with the two most popular being the traditional and […]
The IRS lets you invest in almost any asset class with a solo 401k. However, in order to make investments into alternative assets like real estate, crypto, and private equity, you need full checkbook control over your investment account. Without a self-directed solo 401k, your investment options are limited to whatever your plan provider offers in […]
Roth retirement accounts have a 5-year rule, but the rules are slightly different for a Roth IRA and a Roth 401k (or Roth solo 401k). The Roth IRA lets you withdraw your contributions from your account at any age without penalty, even if you’re not 59½ years of age yet. To withdraw earnings from your account, […]
