Using a Simplified Employee Pension Plan (SEP) IRA to Build Your Retirement Fund

A simplified employee pension plan, also known as an SEP IRA, is a great way to build your retirement fund without all of the headaches and hassles of traditional investment funds. Here are a few of the benefits to consider when deciding on an SEP IRA.

Offering the Best Retirement Fund Option for Employees

The contribution limits are highest for SEP IRAs. For 2018, you can take the deduction up to filing day on April 15, 2019. The maximum employer contribution limit for an SEP IRA is 25 percent, up to $55,000. With a traditional IRA and a Roth IRA, the contribution limits $5,500 or $6,500 if you are over the age of 50.

SEP IRA Can Be Perfect for Entrepreneurs

As a self-employed, partner or owner of a corporation, you put your all into building your business. Having an easy to maintain, low-cost retirement fund plan in place can give you the security you need so you can stay focused on your business.

SEP IRA Can Be a Good Fit for You and Your Employees

You can choose any percentage from zero to 25 percent of your employee’s pay to put toward the SEP IRA. The only rule is the percentage has to be the same for every employee. This is a great way to bring unity to your organization and help employees feel secure about their future. For 2018, $265,000 is the maximum compensation that can be used to calculate your contribution.

To learn more about how an SEP IRA can fund your retirement, visit Mountain West IRA.

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