Is the SEP IRA the best retirement plan for small business owners? Let's take a look at the rules and regulations of the SEP IRA to help you figure out if this is the right retirement plan for you. 0:00 Intro 0:35 Setup Process 0:57 IRS form 5305-SEP 1:04 SEP IRA Employee Eligibility Requirements 2:34 IRS form 5498 2:54 Contribution Limits 3:38 Catch-Up Contributions 4:08 Investment Options 4:48 Traditional IRA and Roth IRA income limits 7:02 SEP IRA contribution formula 9:15 Contribution rates Publication 560 10:41 Roth IRA + SEP IRA 13:58 Is the SEP IRA the retirement plan for you? ///////////////////////////////////////////////// Get answers FASTER... Join this channel to get access to perks: Chat on discord: Join Link Support on Patreon: ----------------------------------------------------- Are you ready for professional investment advice? We can help you with financial planning and asset management. Let us guide your investments to your financial freedom. START HERE Our financial planning process is an ongoing relationship because as you grow, your financial plan grows with you. At Sickle Hunter Financial Advisors, we believe that saving and making sound financial decisions will help improve your life’s changing needs and objectives. Retirement, college planning, wealth building, social security, and career benefit packets are only a few of the financial decisions that you may face in your lifetime and we’re here to help guide you. TRAVIS T SICKLE, CFP®, EA®, AAMS®, CRPC®, RICP® CERTIFIED FINANCIAL PLANNER™ Company Website: twitter: @travissickle Instagram: facebook: LinkedIn: Sickle Hunter Financial Advisors 1646 W Snow Ave. Suite 144 Tampa, FL 33606 ------------------------------------------------------- Gear Used in Videos Income Protection: You have a 1 in 4 chance of becoming unable to work due to disability. Your Breeze Disability Insurance policy will replace part of your lost income if and when you need it. Apply here Partnership referral links Aura Identity Theft Protection *Up to 50% off* HTTPS://www.aura.com/travis Seeking Alpha 50% Discount All Amazon links are affiliate links ____________________________________________________________________________ Information in this video is for educational and entertainment purposes only. sicklehunter.com/disclosures ____________________________________________________________________________ #travissickle...(read more)
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As a small business owner, saving for retirement may not always be on the top of your priority list. However, it's essential to start planning for your golden years as early as possible. One way to do that is by opening a Simplified Employee Pension IRA (SEP IRA). SEP IRA is a type of retirement plan designed for small business owners and self-employed individuals. It's an easy and low-cost way to save for retirement while also providing a tax deduction on contributions. So, is SEP IRA the best retirement plan for small business owners? Let's take a closer look. How does a SEP IRA work? SEP IRA works by allowing employers to contribute funds to their employees' retirement accounts. The contributions are tax-deductible, reducing the employer's taxable income. Employees can't contribute their own money to the account, and the employer has full discretion over how much to contribute each year. Contributions can range from 0% to 25% of each eligible employee's salary, up to a maximum of $58,000 in 2021. The funds in a SEP IRA account grow tax-deferred, meaning you won't pay taxes on any money earned until it's withdrawn. Once you reach the age of 59 1/2, you can withdraw money from the account penalty-free, but you'll still need to pay taxes on the withdrawals. Advantages of SEP IRA There are several advantages to opening a SEP IRA as a small business owner. 1. Easy to set up and maintain Unlike other retirement plans, such as 401(k)s or profit-sharing plans, setting up a SEP IRA is relatively easy. All you need to do is fill out a few forms, and the account is ready to go. Additionally, there's no annual filing requirement or government reporting, making it easy to maintain. 2. Low-cost There are often no administration fees associated with SEP IRA accounts. Unlike 401(k)s, there are no additional expenses such as annual audits, record-keeping, or compliance tests. This means you can save more money for your retirement. 3. Flexible contributions Employers have full discretion over how much to contribute to each eligible employee's retirement account. This flexibility can be useful when cash flow is tight, and contributions need to be scaled back. 4. Tax-deductible contributions All contributions made to a SEP IRA account are tax-deductible. This means employers can reduce their taxable income, resulting in fewer taxes owed. Disadvantages of SEP IRA Of course, there are also some disadvantages to consider when opening a SEP IRA account. 1. No employee contributions Unlike 401(k)s or individual retirement accounts (IRAs), employees can't contribute their own money to the SEP IRA account. This can be a disadvantage for employees who want to save more money for retirement. 2. All employees must receive contributions If an employer makes contributions to an employee's SEP IRA account, they must also contribute the same percentage of their salary to all eligible employees' accounts. This can be a disadvantage if you have a large number of employees or if some employees don't want to participate. 3. Early withdrawal penalties If you withdraw money from a SEP IRA account before the age of 59 1/2, you'll often incur a 10% penalty fee in addition to paying taxes on the amount withdrawn. Conclusion SEP IRA can be an excellent retirement plan for small business owners, but it's not the only option available. Before deciding on a retirement plan, it's essential to consider your business's unique requirements and goals. You may want to consult with a financial advisor to help you choose the best option for your business. https://inflationprotection.org/sep-ira-is-this-the-best-retirement-plan-for-small-business-owners/?feed_id=75405&_unique_id=6401eb19cc87a #Inflation #Retirement #GoldIRA #Wealth #Investing #independentcontractors #ReduceTaxes #RetirementPlans #RothIRA #sepira #sepiraexplained #smallbusinessowners #taxdeductions #traditionalIRA #travissickle #SEPIRA #independentcontractors #ReduceTaxes #RetirementPlans #RothIRA #sepira #sepiraexplained #smallbusinessowners #taxdeductions #traditionalIRA #travissickle
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