The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/greetings-goldenbuckeye-and-welcome-you-wrote-11078536.aspx

Subject:  Re: Roth, SEP, or Keogh Date:  7/23/1999  7:50 AM
Author:  TMFPixy Number:  12492 of 75821

Greetings, GoldenBuckeye, and welcome. You wrote:

<<I need some opinions here. I am self employed and was wondering which retirement plan I should use, Roth IRA, SEP IRA, or a Keogh Plan.>>

Each has its advantages and disadvantages, so it's literally impossible to offer an opinion on which type of arrangement may be appropriate for your situation. Also, while the use of a SEP-IRA precludes the use of a Keogh and vice versa, both may be used in conjunction with the Roth IRA. Accordingly, which of the three you use will depend on your self-employed income, desires for tax deferral, willingness to pay administrative/implementation costs, and a whole host of other issues.

To see what's involved, you may want to get an overview of the SEP and Keogh by reading my Foolish Retirement Plan Primer at http://www.fool.com/Retirement/Retirement.htm. You should also download and read IRS Publication 560, Retirement Plans for Small Business, available at http://www.irs.ustreas.gov/prod/forms_pubs/index.html. Both will give you a better understanding of the issues involved in making this choice.

Regards..Pixy
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us