If you are concerned that you may not be saving enough money for your retirement, there is no need to worry. There are many wonderful investment opportunities that you can utilize and putting your money into an SEP IRA is definitely at the top of the list. There are many benefits that can be enjoyed by doing so.
Contribution Limits Are High
If you qualify for this type of an IRA, then the contribution limits are much higher than they are with a traditional or Roth IRA. In fact, they are about three times higher on average. This means that more of your money is protected from being taxed. However, an employee cannot choose to make contributions directly, it must be done by the company for which you work.
Simple To Adminisieter
On the business side of things, these types of IRA’s are much easier to administer when compared to a 401(k) plan. Amongst those who have to deal with them, 401(k) plans can be an administrative nightmare. This fact alone makes them much more appealing to companies who also want to take care of their employees by offering attractive benefits packages.
Reduces The Tax Bill Of The Company
When a company decides to issue an SEP IRA to its employees, all of these funds up to the maximum allowable contributions, are tax-deductible. This makes for a very enticing way to reduce your tax burden as a company as well as ensure that your employees are happy and taken care of after they retire.
