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URL:  https://boards.fool.com/greetings-kimba0071-and-welcome-you-asked-11892001.aspx

Subject:  Re: SIMPLE vs SEP IRA Date:  1/29/2000  10:28 AM
Author:  TMFPixy Number:  18414 of 99387

Greetings, kimba0071, and welcome. You asked:

<<Can you explain to me the difference between these two IRAs? According to the bulletin board, the only difference I see is that I can out more into a SEP.
My boss is offering me one or the other. >>


For an explanation of both, see my Retirement Plan Primer at http://www.fool.com/Retirement/Retirement.htm. Depending on your salary level and your employer's largesse, the SIMPLE many times enables greater contributions than the SEP. In the SEP, your employer can contribute up to 15% of your pay (limited to $30K), and in the SIMPLE up to 3% (limited to $6K). You, though, may contribute only $2K to the SEP. You may contribute up to $6K to the SIMPLE. In the SEP, your employer's contribution is optional. In the SIMPLE, it is not.

Regards..Pixy
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