SEP IRA

    Features:
    2012 SEP IRA contribution limit maximum is $50,000.
    Easy to set up and minimal administrative responsibilities.

    Disadvantages:
    A Solo 401k may provide a larger contribution compared to a SEP IRA at the same income level.
    For those age 50+ there isn't an additional catch-up provision like there is with the Solo 401k.
    Loans are not permitted

    Advantages:
    The SEP IRA has broad appeal due to its high maximum contribution limits and its ease to set up and maintain. The 2012 SEP IRA contribution
    limit maximum is $50,000. The annual contribution into a SEP IRA is based on a percentage of W-2 wages if you are incorporated or net income if
    you are a sole proprietorship. The SEP IRA is a great choice for self employed business owners who would like to contribute up to 25% of their W-2
    wages or 20% of net self employment income.

         S or C corporation or a LLC taxed as a corporation.
    For incorporated businesses up to 25% of W-2 wages can be contributed into a SEP IRA.
    Sole proprietorship, partnership or a LLC taxed as a sole proprietorship.

    Annual contributions up to 20% of your net adjusted self employment income (or net adjusted business profits) can be contributed into a SEP.
SEP-IRA
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