Why Enrolling in a SEP IRA Is a Great Idea for Your Retirement
If you are wondering exactly what kind of IRA is the best for your retirement plans, it’s understandable if you are feeling a bit bewildered. After all, there are many options out there in which you can invest. However, many brokers feel that a SEP IRA is your best opportunity. There are many reasons why this is so.
This is probably the number one reason why this type of plan is so popular among owners of small businesses as well as those who are self-employed. The fees saved can be redirected to other aspects of the business.
Higher Contribution Limits
When you invest in a SEP, the contributions you are allowed to make and still remain tax-free are quite a bit higher than in a traditional IRA. You can invest up to 25% of your earned income while the limit is only $6000 for a regular IRA. This leaves you earning much more for your retirement while paying far less of a tax burden at the same time. It really is a win-win situation for you.
When compared to other forms of IRA investment accounts, there are certainly more options with a SEP. You can essentially invest in any alternative asset category to help generate your wealth. This gives you a prime opportunity to retire in comfort.
One thing to remember is the fact that you will still have mandatory distributions beginning at the age of 72 just as with any other IRA investment account.