Carry Learning Center

Contributions to a SEP IRA are made with income that hasn’t been taxed yet. You get a tax deduction each year you contribute and investments in your account grow tax-deferred until retirement. A SEP IRA has similar withdrawal rules as a Traditional IRA. Once you contribute to your account, you cannot withdraw from it until you reach the age [...]

OVERVIEW A SEP IRA requires that employers make equal percentage contributions to every eligible employee’s SEP IRAs. For example, if you contribute 10% of your compensation into your SEP IRA, you must also contribute 10% of every eligible employee’s salary into their SEP IRA. An eligible employee is any employee that is at least 21 years of age, [...]

If you’re a W-2 employee, your employer may choose to offer a SEP IRA as an alternative to a full employer-sponsored 401k plan. As an employee, you cannot make direct contributions to a SEP IRA, like you could with a 401k. A SEP IRA is like a simpler, more cost-effective alternative to offering a 401k plan. Smaller companies will [...]

If you’re a business owner, you have the option to open a SEP IRA or 401k at your company. These accounts can only be opened by a business owner; employees cannot establish a 401k or SEP IRA on their own, like they could with an IRA. The main difference between the two accounts is that a business owner [...]

There are many different kinds of IRAs, each with its own set of rules and benefits. A Traditional IRA and Roth IRA are the most similar. They have the same contribution limits and eligibility rules, but only really differ in when and how they get taxed. A SEP IRA is actually closer in function to [...]

The SEP IRA and SIMPLE IRA are both retirement plans available to business owners. They offer higher contribution limits than a Roth or traditional IRA, and are easy to set up and maintain compared to a regular 401k plan. However, the two accounts differ in objective and function. The SEP IRA is more advantageous for business [...]

A SEP IRA (Simplified Employee Pension) is an individual retirement plan for business owners with or without employees. Employees can contribute up to $69,000 for 2024 or $70,000 for 2025. Contributions are made with pre-tax income and are tax deductible and tax deferred until you take qualified distributions in retirement. With a regular SEP IRA, your [...]

SEP IRA OVERVIEW & FAQ What is a SEP IRA? A SEP IRA is an individual retirement account designed specifically for business owners and self-employed individuals. Contribution limits are 10x higher than a traditional IRA. What is the contribution limit of a SEP IRA? Employers can contribute up to 25% of their compensation up to $69,000 for 2024 and [...]

Looking to reduce your taxable income this year? Maxing out a SEP IRA could give you one of the highest tax deductions possible this year.  Your taxable income can get reduced by up to $69,000 in 2024 and $70,000 in 2025 by maxing out contributions to your SEP IRA. Are you self-employed or run a business with no employees? You [...]