Are you Self Employed? Do you own a Home Based Business? Do you have an established plan for retirement or are you hoping for some potential pot of gold? Do you know that you can set up a SEP IRA and not only establish a tax deferred retirement account, but enjoy a TAX DEDUCTION on your annual contributions? Take a few minutes to learn more about it.
The Simplified Employee Pension IRA (SEP-IRA) is one that lets self-employed folks have a greater opportunity to establish a solid Retirement Plan that reflects your success as an entrepreneur. Why bother, you might ask, if they can just use regular, non-SEP IRAs? Well, because the Roth and traditional IRAs have annual contribution limits of $5,500 in 2013 and 2014 ($6,500 for those 50 or older). With an SEP IRA, the limit for 2014 is the lesser of 25% of the employee’s pay or $52,000. If your income is $100,000, that’s $25,000. Even for a more modest $60,000 income, it’s a substantial $15,000.
Here are some more details:
The contribution is made on a pre-tax basis, so it lowers your taxable income for the year of the contribution.
The value of the account will grow, tax-deferred, over time.
When withdrawals are ultimately made in retirement, they’re taxed at income tax rates, not long-term capital-gains rates.
You are ALWAYS 100% vested in the accounts, meaning that the contributions made belong immediately to YOU.
SEP-IRAs using Fixed Index Annuities are GUARANTEED to never lose money!! They are safe, secure investments. Many have Bonus interest during the first 5 years of 8% or even more.
The SEP IRA’s large contribution limit offers flexibility that’s good for businesses with variable cash flow, so that more substantial sums can be contributed in good years and less in not-so-good years.
Early withdrawals will face a 10% extra tax if the withdrawer is younger than 59 and a half.
Beginning at age 70 and a half, required minimum distributions must be taken annually, as with traditional (but not Roth) IRAs.
I am a registered California Life, Health, and Annuities Agent and Professional Tax Preparer with more than 33 years of Insurance, Financial Investment, and Tax Planning/Preparation. The SEP IRAs that I offer are through the top insurance companies in the US.
Contact me by phone or fill out the information form below to find out how to establish your retirement plan.
Larry Robinson
CA License 0D66701
Tax Preparer ID: P00817312
714-561-1138
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