#1
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Traditional IRA vs SEP IRA
Since I am self-employed, wouldn't it make more sense for me to open a SEP IRA instead of the traditional IRA where my yearly contribution is limited at 4k?
Another question I have is the need for a traditional IRA if I want to open a SEP IRA. I keep reading at the SEP IRA website but do not understand if I need to create a traditional IRA or not. Thanks. |
#2
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Re: Traditional IRA vs SEP IRA
if you are truly self employed, then you are paying an extra approximate 15% self employment tax on top your regular income tax bracket. an SEP IRA is crucial to offset some of that tax burden.
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#3
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Re: Traditional IRA vs SEP IRA
That still doesn't answer the question on whether I need both the traditional IRA and the SEP IRA accounts.
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#4
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Re: Traditional IRA vs SEP IRA
sep ira account is stand alone
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#5
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Re: Traditional IRA vs SEP IRA
Yes, you want both -- A SEP and a ROTH.
Remember, though, if you have any employees you must offer them the same SEP.... Iott |
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