Self-Employed? Here's Why You Might Want to Open an SEP IRA

As a business owner, an SEP IRA could be the perfect way for you to start saving for retirement. This type of IRA allows employers the ability to make contributions for themselves. The Balance shares a few more benefits of this retirement plan that we think you'll want to hear.

The annual contribution limits for an SEP IRA are usually higher than what you will get in other retirement plans. The maximum limit for 2018 is $55,000, or up to 25% of your gross annual income. For 2019, this number goes up to $56,000. The Balance mentions that contributions can be invested tax-deferred until the money is withdrawn at retirement. Furthermore, as someone who is self-employed, you have might have until tax day (April 15th) to make contributions for the year prior. For example, if you currently have an SEP IRA, you would be able to make contributions for 2018 until tax day of 2019. 

The Balance shares more on how SEP IRAs and how they might be helpful to you as a business owner, or self-employed individual. As always speak with your financial advisor to decide if this is the right option for you. Regardless of the plan you choose, we hope that you continue in your efforts to save for retirement!

Visit The Balance for more information: https://ow.ly/io5S30mMShy

?How do you think an SEP IRA can benefit you and/or your business? Share below!