Month: December 2020

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SEP IRA – Simplified Employee Pension Plan

December 4, 2020 admin Comments Off on SEP IRA – Simplified Employee Pension Plan

How a SEP IRA Works

An individual retirement account (IRA) is a type of tax-advantaged account you can use to save money for your retirement. With a simplified employee pension (SEP) IRA, you can enjoy having an IRA that works for self-employed workers as well as traditional workers. After an employer sets up the account, they can make contributions for all of their eligible employees.
Many people love using SEP IRAs because of how easy they are to set up. At a company like Vanguard, it takes just a few minutes to create an account. Once the appropriate paperwork and identification …read more […]

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Why an Employee Stock Ownership Plan Makes Sense

December 4, 2020 admin Comments Off on Why an Employee Stock Ownership Plan Makes Sense

An employee stock ownership plan is one of many types of retirement plans employers can offer. Like a 401(k) or IRA, those who participate receive tax benefits. This makes them qualified plans.
But unlike the humble 401(k) or IRA an employee stock ownership plan offers employees an ownership stake in the company. The intended result is to provide a quality retirement plan while keeping shareholder and employee interests in sync. Here’s how they work…

It starts with a trust. The trust then has to be funded by the employer. Once funding is secure (either borrowed from a bank or from cash on …read more […]