- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
SEP IRA
Posted on 11/6/23 at 3:12 pm
Posted on 11/6/23 at 3:12 pm
Anybody do the SEP? I have meeting with accountant but got a few questions for anybody who has done it.
Posted on 11/6/23 at 4:26 pm to XenScott
Posted on 11/6/23 at 4:31 pm to XenScott
Is it just you? Do you have employees?
Posted on 11/6/23 at 6:54 pm to XenScott
I wonder if a roth sep option will be available at some point
Posted on 11/6/23 at 7:38 pm to XenScott
I am an employer with a SEP IRA. I write a check for each employee and deposit it with the financial institution which handles the SEP. The financial institution will set up the individual with an account. From there all I need is their account number. Once the check clears its no longer my business.
It is great to have if the company is a success, and gives the employee incentive to make it a success. It is liked by employees because they can get way more $ per year then by contributing on their own and an employer match to a 401K. I think the max contribution a year is $66,000, and goes up to $69K next year.
You are not obligated to fund the SEP each year, but you won't get the benefits either as every employee gets either a max 25% payout or $66,000. What I do it set up my salary to max out the $66K using the 25% method. Otherwise I would have to pay each employee $66K including the janitor. The contributions need to be even for everyone.
It has not happened yet, but I reiterate every year that this should never be expected, but it is in our best interest to pay into the SEP to save on taxes, and maintain morale. It gives them motivation to make the company better.
It is great to have if the company is a success, and gives the employee incentive to make it a success. It is liked by employees because they can get way more $ per year then by contributing on their own and an employer match to a 401K. I think the max contribution a year is $66,000, and goes up to $69K next year.
You are not obligated to fund the SEP each year, but you won't get the benefits either as every employee gets either a max 25% payout or $66,000. What I do it set up my salary to max out the $66K using the 25% method. Otherwise I would have to pay each employee $66K including the janitor. The contributions need to be even for everyone.
It has not happened yet, but I reiterate every year that this should never be expected, but it is in our best interest to pay into the SEP to save on taxes, and maintain morale. It gives them motivation to make the company better.
Posted on 11/6/23 at 9:18 pm to XenScott
SEP is a good option if you are a 1099 or don’t have any employees.
If you do have employees you can still technically use it for the first 3 years of owning the business without contributing to the employees portion.
Once that goes away it gets very very expensive to pay for the employees portion so it’s better to switch to 401k/simple ira
If you do have employees you can still technically use it for the first 3 years of owning the business without contributing to the employees portion.
Once that goes away it gets very very expensive to pay for the employees portion so it’s better to switch to 401k/simple ira
Posted on 11/7/23 at 6:09 am to XenScott
Yes.
I put it 25% of what I pay myself. It's more than double the regular IRA max.
I put it 25% of what I pay myself. It's more than double the regular IRA max.
Posted on 11/9/23 at 6:42 pm to XenScott
You’ll be able to put more away with a 401k. But a SEP is simpler. If you’re trying to maximize your contributions then use a 401k.
Popular
Back to top
Follow TigerDroppings for LSU Football News