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I am looking to set up a SEP IRA. As I understand I am allowed to put in 25%of the salary I pay to myself. If I pay myself $80,000, does that mean I can put in $20,000 in SEP IRA? Is there a deadline like December 31st to set one up for 2007? Can I open SEP Retirement plan in any brokerage firm such as Fidelity?
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1.If I pay myself $80,000, does that mean I can put in $20,000 in SEP IRA?
Yes. Up to 20,000 but you must match any other worker with the same percentage, in this case 25%. Be careful if your not a Sole Proprietor it's a different calculation. If you are the only employee I would think a Solo 401k you would be much better, you could put up to $30,000 away in a Solo 401k.
2. Can I open SEP Retirement plan in any brokerage firm such as Fidelity?
Yes. Every firm that I know has a SEP IRA option
3. Is there a deadline like December 31st
Yes. The day you file.