Sunday, June 16, 2019
Stash your cash in a SEP - Hustler Daily Thumbs Up - June 16
Hello fellow Encore Hustlers
If you have an encore hustle that classifies you as an independent sole proprietor business owner then you should read this article from Bankrate.com about the advantages of setting up your own SEP IRA.
A SEP IRA stands for Simplified Employee Pension Individual Retirement Account. This allows you to shelter 25% of your business earnings or $56,000 of business income, whichever is less. The SEP IRA is independent of any participation in other retirement shelters. For example this business is a side hustle and you are also still working for another employer who has a 401k program, then you can also contribute up to the maximum that you are allowed in the 401k. You can also contribute to either a traditional IRA or Roth IRA.
So if your side hustle is successful and you are in a position not to need the income to cover to immediate needs the SEP IRA might be right for you.