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An SEP IRA: Up To 10 Times The Usual Contribution Limit
Posted By Ron On September 13, 2012 @ 8:40 AM In Investing,Retirement | Comments Disabled
If you’re interested in depositing much, much more into an IRA than the traditional $5,000 annual limit, an SEP IRA may be just the ticket. The catch? You’ll have to start your own business (read 26 Ways to Make Extra Money Wile Keeping Your Day Job ).
Simplified Employee Pension Individual Retirement Accounts, known as SEP IRAs, are IRAs that business owners can set up and fund on behalf of employees and/or themselves, even if there’s only one employee … YOU! And the annual contribution limit for 2011? Almost ten times the regular IRA contribution limit! One key difference is that instead of the employees, it’s the employers that make contributions to the plan. Last year, corporations were able to make a contribution of the lower of $49,000 or 25% of an employee’s compensation, so if you want to get started making much larger contributions to YOUR retirement account, get your corporation started with myCorporation ASAP and get your business off the ground.
SEP IRAs are most often used by:
SEP IRAs have four main advantages:
SEP IRAs for self-employed sole proprietors work a bit differently from SEP IRAs for employers.
Regardless of whether you’re a sole proprietor or an employer, there are a lot of rules surrounding the use of SEP IRAs so be sure and check out the IRS web page on SEP IRAs  and consult with a qualified financial advisor  to ensure you’ve dotted your i’s and crossed your t’s.
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 26 Ways to Make Extra Money Wile Keeping Your Day Job: http://www.thewisdomjournal.com/Blog/make-extra-money-incom/
 get your corporation started with myCorporation : http://www.thewisdomjournal.com/Blog/go/mycorporation.php/
 401(k): http://www.thewisdomjournal.com/Blog/retirement-101-401k-retirement-plans/
 tax advisor: http://www.thewisdomjournal.com/Blog/go/wiseradvisor.php
 Start your Scottrade SEP IRA today and begin making some meaningful contributions!: http://www.thewisdomjournal.com/Blog/go/scottrade.php/
 IRS web page on SEP IRAs: http://www.irs.gov/retirement/article/0,,id=111419,00.html
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