SEP IRA

Archive for December, 2006

Question: se401k vs SEP IRA?

I have both account. I will only be making Contribution to the se401k plan. Is there any advantage to having both accounts? Should I combine them into the se401k plan? Is there any difference in withdrawal from these accounts, when I retire?
se401 – self employ 401k
I have a sCorp, with me as the only employee.
se401k and SEP IRA are just different accounts. There have the same investment choices. Having 2 accounts would be more work to look after them. It would not spread the investment risk.

Answer: There is no advantage tax-wise to having them both. There is, however, an advantage in that your money is spread over a wider range of investments and thusly less susceptible to market fluctuations….

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