Skip to main content
No. of Recommendations: 0
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
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
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.