SEP-IRA
Freelancer retirement account
A SEP-IRA (Simplified Employee Pension Individual Retirement Account) is a retirement savings plan for self-employed individuals and small business owners.
The employer makes tax-deductible contributions directly to employees' IRAs, with higher contribution limits than traditional IRAs.
SEP-IRAs are simpler to administer than 401(k) plans: She opened a SEP-IRA for her freelance income.
Working independently, not hired
- retirementLeaving the workforce permanently
- accountRecord of dealings
- individualOne separate human being
- contributionSomething given to help
tax-deferred · simplified · pension · plan · solo · freelancer · 1099 · contractor
Out-of-pocket threshold amount
- limitMaximum allowed extent
- percentageProportion out of hundred
- compensationPayment for services rendered
- maximumGreatest permitted quantity
annual · deadline · discretionary · flexible · variable · catch-up · funding · deposit
Before levies apply
- deferredSet aside until later
- deductionConclusion from premises
- taxableSubject to government levy
- withdrawalAct of taking away
distribution · 72 · penalty · write-off
Transaction-facilitating service
- ETFTradable pooled investment vehicle
- stocksOwnership stakes or inventory
- bondsTies that unite
- CDOptical data disc
money-market · diversification · portfolio · allocation · growth · compound · returns · Fidelity
Less complex
- paperworkAdministrative written tasks
- administrationOrganizational oversight and control
- conversionAct of changing states
- transferMove between locations
consolidation · advantages · drawbacks · choosing · alternatives
self-employed
Working independently, not hired
- retirementLeaving the workforce permanently
- accountRecord of dealings
- individualOne separate human being
contribution · tax-deferred · simplified · pension · plan · solo · freelancer · 1099 · contractor · custodian
deductible
Out-of-pocket threshold amount
- limitMaximum allowed extent
- percentageProportion out of hundred
- compensationPayment for services rendered
maximum · annual · deadline · discretionary · flexible · variable · catch-up · funding · deposit · threshold
pre-tax
Before levies apply
withdrawal · distribution · 72 · penalty · write-off
brokerage
Transaction-facilitating service
CD · money-market · diversification · portfolio · allocation · growth · compound · returns · Fidelity · Vanguard
simpler
Less complex
- paperworkAdministrative written tasks
- administrationOrganizational oversight and control
- conversionAct of changing states
transfer · consolidation · advantages · drawbacks · choosing · alternatives
SEP-IRA401(k)
Tax-advantaged retirement savings account
403(b) · pension plan · company pension · government pension