SEP (Simplified Employee Pension) plans are a type of retirement plan, similar to a 401(k), for small businesses and self-employed individuals.
SEP IRAs are cheaper and simpler to set up and manage than 401(k)s. As a result, they are an attractive option for single-employee owner-run businesses. Their main downside is that they provide fewer features than 401(k) plans. Most notably, SEP IRAs don’t allow a Roth option.
SEP IRAs are a tax-deferred savings vehicle, meaning that contributions to the plan are deducted on your taxes now and only taxed when you withdraw the assets. Like other tax-deferred savings, SEP IRAs …Read More