IRA-401k Roth

[julia2020a]

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?

[nancyc9981]

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?

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.

[fcmoney]

I will suggest to open Retirement account for Self-employment and put away as much as $30,000 because you can deduct money currently and you don't have to worry about big expenses, save money now because when black hour come you can have some money to live on! you know what I call black hour? Recession

[bika]

How old are you? Do you think you can continue your plan?

[puchchu]

There shoud be some dead line, but I am not sure.