Self-employed people have several special retirement plans from which to choose, including a Simplified Employee Pension (SEP), a Keogh, a SIMPLE, or an individual 401(k). All of the plans allow you to deduct your contributions from your income, and the money grows tax deferred in retirement.
The SEP is designed for self-employed individuals and small business owners, typically with 25 employees or less.
SEPs work well for family-run businesses. All must be given the same match. Once you hire outside of the family, it begins to not work as well.
SEP is the appropriate plan option when the employer …Read More