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Hello all. I am one of the many beginners struggling with a few year end decisions and desperate for some direction. I am trying to set up a retirement fund for my self-employed spouse. He is the only employee of his company other than me who provides some administrative support. He hires additional help as contract workers only. I make contributions to a 401K.

Would the SEP be the best retirement plan? Is he required to contribute to contract workers under this plan? Can IRAs be used in addition to the SEP?

Any assistance would be so greatly appreciated.
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SEP/Simple IRA's are great. You can put up tp 20% of your net earniings into the IRA. i hope that is more than the regular IRA.

Contract employees are not employees for this purpose.

My wife has used the SEP and we like it.

cliff
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I have/am a 1 person company (have been for 15 years). I have a SEP through Vanguard, and have been very happy with that choice.

Salecat
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Thanks so much for the help. I was considering both Vanguard and Scottrade for the SEP. Would you recommend Scottrade for this purpose?
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You can set up a SEP with Vanguard, Scottrade and any of several dozen other companies. They all want your money. Rather then looking at the fees associated with the SEP itself, you might be much better off to look at fees and returns on your investments.

If you are going to invest in mutual funds, do some serious reading about fees. If you are going to invest in stocks, you will have to do some work at stock selection and the one item that is more important the stock selection - stock selling. Very little written about that one!

I happen to have a SEP with Schwab. I made that choice because they happen to have a wide selection of Mutual Funds (most companies do), they have reasonable fees (like zero for a large number of mututal funds if I keep the investment more then 180 days) most importantly when something goes wrong or when I need help to deal with an abnormal situation - I have found these people can be reach by phone anytime and I get treated fairly. I am not saying other companies do not do the same - I am saying however you really will find out how good the company you choose is when something bad happens - and yes something untoward will happen someday.

Gordon
Atlanta
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I haven't used Scottrade so I can't compare them. If you plan to buy a lot of individual stocks, I understand Scottrade's commissions are considerably lower.

But in terms of customer service I have been very pleased with the level of service and knowledge of Vanguard's representatives. I've dealt with other investment companies & stock brokerages, and Vanguard has been superior to any of them in my experience.

FWIW...Salecat
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SEP/Simple IRA's are great. You can put up tp 20% of your net earniings into the IRA. i

You are talking about a SEP. A Simple is very different.

buzman
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