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swiss bank account
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SEP-IRA
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A
SEP or Simplified Employee Pension is a Plan that allows a self
employed person to make contributions toward their own and their
employees' retirement plans without becoming involved in more complex
plans. The contributions are made to a traditional IRA of each
participant of the plan, therefore the term SEP IRA. |
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participant under the SEP may establish their own IRA at the
institution of their choice. As the underlying account is an IRA, any
covered employee may have a self-directed IRA as their SEP-IRA. This is
in addition to any other IRAs one has. |
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Compared
to other plans, the annual maximum on SEP contributions is high:
$40,000 or 25% of earned income, whichever is less. You may take a tax
deduction of 25% of compensation (20% if you're self-employed) paid
during the year to the participants under the plan.
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So
if you have high earnings and want to build a nest egg quickly or
shelter income from taxes, a SEP could be exactly what you're looking
for. If contributions are made, they must be made in accordance with
set rules, which may be different for each situation. Your Tax
Accountant should assist you in ensuring compliance.
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| Roth IRAs are not eligible for SEPs, however IRAs to which SEP contributions have been made may be converted to Roth IRAs. |
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ALL
SECURITIES OFFERED THROUGH THE INVESTMENT CENTER, INC., Bridgewater, NJ
Member NASD - SIPC - A REGISTERED INVESTMENT ADVISOR LICENSED IN THE
FOLLOWING STATES: CA, CO, CT, FL, GA, LA, MD, MI, MS, NC, NJ, NM, NY,
PA, TX, VA
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