IRA PLANS & INVESTMENTS

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Active Financial Group
https//www.activefinancialgroup.com/
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IRA PLANS INVESTMENTS
IRA OPTIONS
SEP IRA-
Best for Self-employed people or small-business
owners with no or few employees. Contribution
limit The lesser of 57,000 in 2020 (56,000 in
2019) or up to 25 of compensation or net
self-employment earnings, with a 285,000 limit
on compensation that can be used to factor the
contribution. Again, net self-employment income
is net profit less half of your self-employment
taxes paid and your SEP contribution. No catch-up
contribution.
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IRA PLANS INVESTMENTS
IRA OPTIONS
SEP IRA-
Tax advantage You can deduct the lesser of your
contributions or 25 of net self-employment
earnings or compensation limited to that
285,000 cap per employee in 2020 on your tax
return. Distributions in retirement are taxed as
income. There is no Roth version of a SEP
IRA. There is a special rule for sole proprietors
and single-member LLCs You can contribute 25 of
net self-employment income, which is your net
profit less half your self-employment tax and the
plan contributions you made for yourself. The
limit on compensation that can be used to factor
your contribution is 285,000 in 2020.
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IRA PLANS INVESTMENTS
IRA OPTIONS
SIMPLE IRA-
Best for Larger businesses, with up to 100
employees. Contribution limit Up to 13,500 in
2020 or 13,000 for 2019 (plus catch-up
contribution of 3,000 if 50 or older). If you
also contribute to an employer plan, the total of
all contributions cant exceed 19,500. Tax
advantage Contributions are deductible, but
distributions in retirement are taxed.
Contributions made to employee accounts are
deductible as a business expense.
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IRA PLANS INVESTMENTS
IRA OPTIONS
SIMPLE IRA-
Employee element Unlike the SEP IRA, the
contribution burden isnt solely on you
Employees can contribute through salary deferral.
But employers are generally required to make
either matching contributions to employee
accounts of up to 3 of employee compensation, or
fixed contributions of 2 to every eligible
employee. Choosing the latter means the employee
does not have to contribute to earn your
contribution. The compensation limit for
factoring contributions is 285,000 in 2020.
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Active Financial Group
Website https//www.activefinancialgroup.com
/
Office One Address 1300 Ridenour Blvd, NW, Suite
221, Kennesaw, GA 30152 Email
team_at_activefinancialgroup.com Phone No (678)
574-0080
Office
Two Address 2207 Spalding Drive
Atlanta, GA 30350 Email Cstefan_at_activefinancial
group.com Phone No [phone]