SEP IRA....a shockingly good value for small businesses w/o employees

[huggytree]

Its time to put away for retirement again and i always use a SEP after i max out my ROTH

if your a small 1 man business like me this is the best thing for you. It dramatically lowers your taxes

ill talk money here because its the only way to show how well it works for me

i am putting $20,000 in a SEP this year. it will lower my taxes by $7,500!!!!!

so in reality im only putting $12,500 out of my pocket, but im getting a $20,000 value

just thought id post it in case anyone else is in my situation of paying too much in taxes.

if you have employees it doesnt work the same...you have to cut the employees in on it

[Evan]

Correct, it may not work if you have employees. Additionally, the amount you can contribute is limited to a percentage of your wages; or the amount can become a bit more complicated if you're self-employed.

[Evan]

A 401(k) could work even better, potentially, but like everything, all the costs need to be weighed carefully.

[huggytree]

i guess there's something i can do similar to a SEP once i hire employees....its a lower % of your income...once i hire im done with the SEP

the most important thing about the SEP is it allows you to manipulate your taxes a bit and lower your bracket by putting more/less into retirement...