I am starting a limited liability company (LLC). I will be the sole member. Can I open an SEP IRA? How much tax-deferred money would I be able to contribute each year?

Retirement, Retirement Savings, IRAs
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August 2016
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Congrats on starting your own LLC, and kudos for saving for retirement. The great news is you can potentially put away 25% of your income into a SEP IRA. 

If you are ambitious, you can contribute $53,000 in 2016. There are no catch–up contributions allowed with SEP-IRA regardless of age. However, you may still be able to contribute to a Traditional IRA or a ROTH IRA depending on your income.

If you are able and willing to save more, you might also want to consider pairing a Defined Benefit Plan with your 401(k). Read more here on this additional retirement plan.

Consult your tax professional for more specifics and to help calculate your actual maximum contribution.

All the best,

By David Rae, Certified Financial Planner™, Accredited Investment Fiduciary™

Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA, SIPC, a Registered Investment Advisor. Trilogy Capital Trilogy Financial and NPC are separate and unrelated entities.  The opinions voiced in this article are for general information only and do not constitute an endorsement by NPC. NPC does not provide tax advice. FinancialPlannerLA.com

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