| Do you have a retirement planning question? | | | | However, if you are your only employee, you |
| Want to know what a SEP retirement plan is; a | | | | might consider investing in a Roth IRA account |
| traditional Ira or a Roth IRA account? Do you | | | | instead. Unlike the SEP retirement plan, there is no |
| want to know which investment option will | | | | forced withdrawal or end date for contributions. |
| provide you with the best rate of earned income? | | | | You can continue to deposit funds or delay |
| Then this article is for you. | | | | withdrawing funds until you ready to do so. And, |
| Small business owners often opt to set up SEP | | | | because you pay taxes on the income before it |
| retirement plan accounts for themselves and their | | | | goes into the account, you never have to pay |
| employees. This is because this type of plan is | | | | taxes when it is withdrawn. That means you |
| easy to set-up and generally cost less than other | | | | might actually save even more money because |
| options that may be available. The business owner | | | | taxes usually go up over time. |
| receives a tax deduction for their contributions to | | | | Another advantage to a Roth IRA is there are |
| their employees retirement account as well. This | | | | more investment options available. In fact, you |
| can be a very good choice if you have more than | | | | can even invest in real estate. Real estate |
| 1 but less than a hundred employees. | | | | investment represents a safer and usually more |
| A SEP retirement plan requires that each | | | | profitable rate of return. Property is a tangible |
| employee set up a traditional IRA account into | | | | asset that is usually protected with insurance. The |
| which the employer's contribution is deposited. | | | | value of the property usually doesn't decrease |
| Because Sep is linked to a traditional IRA, the | | | | with every rumor on Wall Street like traditional |
| rules for withdrawal are the same. If, except | | | | funds often do. And most people see their rate |
| under specific circumstances, the money is | | | | of income is more than double the rate on those |
| withdrawn before an individual reaches 59 1/2 | | | | other financial instruments. This makes investing a |
| there is an additional 10% penalty tax apply. When | | | | very wise choice, especially if you have gotten |
| the employee reaches 70 1/2 contributions must | | | | off to a slow start in your retirement planning. |
| stop and the employee must begin withdrawing a | | | | Whether you choose a SEP retirement plan or a |
| government mandated minimum amount. The | | | | Roth IRA, what is most important is that you do |
| funds are usually invested in traditional financial | | | | have a plan in place to insure your future. Wise |
| instruments like stocks, bonds, and municipal | | | | investments now can mean a brighter future |
| funds. | | | | then. |