Both the SEP IRA and the SEP 401k are retirement plans for small businesses, and the one that you choose will depend on certain conditions and preferences of the business owner, which , if you are reading this is probably you. They each have different benefits and drawbacks and they each are appropriate for different objectives. However, if you do not understand those differences, it will be difficult to choose the right one for your needs. A SEP IRA allows employees to contribute up to 25 percent of their compensation, up to $53,000 each year. The contributions are made pre-tax, which means the participants do not have to pay taxes on … [Read more...]