Damon Paull update: ✨ Beating Retirement Goals with SEP-IRAs: Do Small Business Owners qualify? ✨

✨ Beating Retirement Goals with SEP-IRAs: Do Small Business Owners qualify? ✨

🚀Small Business owners and CEOs!

Here's a deep dive into the empowering world of SEP-IRAs & let me share a secret—this can be a game-changer for small business owners & entrepreneurs!

You know how we're always juggling responsibilities and wondering if we're giving our future selves enough love?

That's where SEP-IRAs shine! It's not just a retirement fund; it's a beacon of hope. 🌟

Here’s how you set one up:

1️⃣ Know Your Limits: In 2022, you can tuck away a generous $61,000 or up to 25% of your compensation. That's a retirement pot of gold waiting to grow!

2️⃣ Flexibility is King: Unlike other retirement options, SEP-IRAs offer adaptability with contributions. Tough year? Lower contributions. Fantastic year? Increase contributions!

3️⃣ Paperwork Schmaperwork: Setup is SIMPLE. A Form 5305-SEP. No need to navigate an ocean of paperwork!

4️⃣ Tax Advantage Bonanza: Contribute pre-tax income now; pay taxes later when you retire, maybe at a lower rate. Smarter taxes = a brighter smile.

As business owners, you're in the unique position to make our retirement years as vibrant as your entrepreneurial journey. Think of how empowered you’ll feel watching your retirement savings accumulate! ✨

💼 Here's to making smart choices & painting our golden years with the brush of abundance.



🆒Math for Analyst Types
The formula for calculating contributions to a SEP-IRA (Simplified Employee Pension) for the self-employed in 2024:

Net profit from your business, find on your IRS Schedule C.

Subtract half of the self-employment tax from your net profit. This accounts for the employer portion of the self-employment tax, allowing you to base your contributions on your earned income after this expense.

Apply the contribution % that is allowed under SEP-IRA rules.

In 2024, can contribute the LESSER of 25% of your net earnings from self-employment or $69,000.

So the specific calculation you would use is:
(SEP-IRA Contribution) = (Net Profit - 1/2 of Self-Employment Tax) x 0.25

However, make sure the result doesn't exceed the maximum contribution limit of $69,000 for 2024.

It's always best to consult a tax professional when calculating your SEP-IRA contributions to ensure accuracy and compliance with current IRS rules.

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