October 7, 2008
Did you know
that there are some advantages of a sep ira over the 401k retirement savings plan? If you own your own business, it can be expensive and complex to set up a 401k plan for yourself through the business. In stark contrast, the sep takes to pages of paperwork to set up, and typically don’t have to report anything regarding the plan to the IRS each year. However, if you have been looking longingly at the loan option of the 401k, than the sep will not meet your needs. The 401k allows you to take out a loan for up to five years, and up to 50% of the account balance or $50,000 (whichever is smaller). If you wish to loan yourself the money to purchase your first home, the repayment period of the loan can be increased.
