Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next
Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 124215  
Subject: Re: IRA, Roth IRA, and SEP Date: 1/15/2014 8:21 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
On a related note, is there an advantage/difference between an IRA or SEP, or are they functionally equivalent but just have different limits?

A SEP is a way of getting money into a traditional IRA. Once it's there it behaves just like any other traditional IRA money.

Do either of them avoid the self employment tax, or the individual side of social security?


And with a ROTH/IRA you have up until tax day to make your contribution for the proceeding tax year. Is a SEP the same in that respect?

SEP contributions can be made up until the extended due date (October 15).

Sorry, I'm new to SEPs and the self employment tax in general, though truthfully I also can't remember if a standard 401k deduction avoids any of the various payroll taxes other than federal income.

It doesn't. Retirement plans available to the self-employed are covered in IRS Publication 560.

Rule Your Retirement Home Fool
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.