What is a SEP IRA? What is a SEP IRA?

What is a SEP IRA?

Joey Farbstein Joey Farbstein

SEP IRA: Simplified Employee Pensions have higher contribution limits, but are meant for Self Employed (1099 Income).

- Talk to Tax advisor/CPA if this is a better option for you

- The maximum contribution is $61k for 2022 ($58k for 2021) or roughly 25% of your business’s revenue ( whichever is lesser)

- Funded with Pre-Tax dollars

- Grows tax-deferred

- Taxed once you take distributions at ordinary income level

- Cash Contributions are tax-deductible.