SEP IRA Explained

by | Jul 29, 2022 | SEP IRA | 31 comments

SEP IRA Explained




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31 Comments

  1. Puneet Jajoo JR

    Big ups to everyone working effortlessly trying to earn a living while building wealth. I’m 50 and my wife 44 we are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. Saving and investing lifestyle made it possible for us this early even till now we earn monthly through passive income.
    Thanks to fire movement.

  2. Andrew Forma

    I’m 55. My parents died. I inherited their IRAs. Is there a way to avoid paying taxes this year?

  3. Sideler74

    25% of your net income (after all your deductions). So 25% of $224K = $57k. That's the amount you can make in a contribution to your plan. as of 2020. It's been bumped up to $58k in 2021.

  4. ks1307

    Do I open the IRA on my name or my company's name?

  5. dont tread

    Do you have a single SEP-IRA's or multiple SEP-IRA's if multiple contributors?

    1. Would my employed (W2) and self employed (sole prop) SEP-IRA contributions go in to a single SEP-IRA, or would I be required to have two SEP-IRAs?

    2. Is there any problems with taking a SEP contribution for my sole prop income and S-Corp W2 income?

    3. Would I keep two Form 5305-SEP's for my records?

    My Sole prop income was in Q1 only. This sole prop then became a SM-LLC (S-corp election) and was my income for the rest of the year.

  6. NAM LY

    Thank you very much.

  7. Jason llc

    But if a business owner is giving to a employees SEP then what’s the continuation amount, since it employer based does it go off of there amount or the employees???

  8. Eddie Zhang

    This seems to be a general question but I could not find a answer anywhere:
    /?
    when employer contribute the SEP IRA for an employee, does the amount come from the employee's compensation or is the amount additional to the employee's compensation

  9. April Collins

    My question is how to fund my SEP account. I get paid by my clients. The money goes into my business account, and I take a member distribution (singe LLC) for my personal paycheck. Should my contribution come from my business account or personal account?

  10. Le0

    How many years do I need to have been self employed??? or is there not a time frame?

  11. Jacob Brauer

    Do SEP IRA and Roth IRA have separate contribution limits? Or are they somewhat combined like that of Roth and Traditional IRA? I currently have Roth and HSA accounts that I max out each year, am considering opening a SEP Ira to contribute to after the Roth and HSA are maxed out.

  12. Allan S

    Great video! I am self-employed c corp. Is the SEP funded with corporate funds and therefore the corporation also takes a tax deduction or Is it funded only through personal employee funds ?

  13. rhomotor

    I have a Roth IRA that I contribute to with my earnings from my full time job. I also have a part time job, where I am considered to be a independent contractor. I want to open a SEP IRA to deduct some of the taxes I have to pay. Is this a wise decision, since being taxed later when I retired it would be relatively higher?

  14. Texas Discount Land

    Well explained. Thanks for posting this video, very helpful sir.

  15. Nelson G.

    Good info, thanx

  16. Chris Grenier

    Can I roll over a Roth IRA into a SEP IRA without penalty?

  17. Scott Brannon

    So is it 25% of just the business earnings or since I have a business and a w2 job can it be 25% of that combined?

  18. Lisle Brathwaite

    I own my own business and have only a savings account. A SEP IRA sounds like my best option, but I'm 43. Is it too late?

  19. DFW 1Fast1

    Excellent. Have been setting these up for a ton of clients.

  20. Nova Neteret

    This is what I am currently researching

  21. Thrift Diving

    Hi! Quick question: Is that 25% of your TOTAL contribution or your adjusted gross income? I can't seem to find that answer anywhere! Thanks in advance!

  22. Karl Cieslewicz

    can you use a traditional IRA in place of your SEP IRA?

  23. Justin Keller

    Heads up, if you are a business owner that receives compensation as personal income (no W-2), then the limit is 20% (not 25%) or $55,000 as of 2018.

  24. Victor Ramirez

    If I’m a Corp s with employees do I have to contribute to my employees or can I just save for myself?

  25. DCManigault

    So the SEP IRA has to be under a business name or a EIN? I am a freelancer that obtains W2s from my employers.

  26. Kamal Preet

    I'm a truck driver owner operator of I buy another truck and hire a driver and pay him on a 1099 do I have to contribute towards him as if an employee

  27. Robert Taylor

    So if you work for a large company but have a sole proprietorship on the side, I gather that qualifies you for a SEP IRA? Does the 25% of income include just the income from the business, or does it specify total income, ie can I do 25% of the total between my side business and my job in addition to my Roth IRA and 401k contributions?

  28. Michael Herrera

    I'm self employed and expect to make around 80k this year, So that means I can put around 20k In a sep Ira, when I do my taxes this year I expect to pay somewhere around 15k-18k in taxes. If I do 20k in the Sep-ira how much would I owe the tax man at the end of the year zero?…. Or is Net made 80k minus my 20k in the sep-ira so my taxable income is reduced to 60k?

  29. Jason Talmage

    Dustin, good video, short and sweet.

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