Hello, in this lecture, we want to talk about what a SEP IRA is and how it can be helpful to a small business. We will be able to define what a SEP IRA is, explain how it works, and list the pros and cons of the SEP IRA. As always, you want to seek tax advice from a professional when looking into retirement plans for a small business, including the SEP IRA. Ok, so we're gonna start off with what is a SEP IRA? It's gonna be a type of retirement plan for a small business. The major goal of the retirement plan is to reduce the taxes in the year of contribution. When we think about a retirement plan, we often think about a 401k plan for a business or an IRA for an individual. The reason we put the money in there isn't so much just to put it in savings for retirement, because we could put it into any account in order to save for retirement. The reason we put it into an IRA, which is restricted, is because we are incentivized to do so by the fact that we get to have a deduction or reduce our taxable income in the year of distribution. So that's what we want to do here. Now, the benefit of the SEP IRA or the 401k plan over just an individual IRA generally is basically that we can put more into it, and that's the major goal. So when we think about a small business putting the money into a retirement plan or setting up some type of retirement plan like a SEP IRA, usually the benefit will be that we're trying to increase the amount that can be put into the plan and, therefore, reduce the taxable income, reducing the...
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Sep Ira start Form: What You Should Know
Step #3 — Make a SEP Rollover into the SEP-IRA Step #4- Save the SEP-IRA for future contributions Step #5 — Make the SEP IRA withdrawal(s) The SEP-IRA withdrawal(s) is accomplished after you have made your SEP IRA contribution. Step #6 — Submit the SEP IRR Step #7 — Receive and Process the SEP IRR Step #8 — File the SEP Notice of Withholding If all of your employees make the 1099-R, they are required to include the tax withheld in their salary. (1095) Step #9 — Issue a 1099-B If the tax is not in the 1095 or 1099-R, send the 1099-B form to the employer for reporting by the IRS. You MUST also have a 1099-C form filed from the SEP withdrawal and then a 1099A form filed from the SEP (IRA), if you do not have a 1099-C at the time of the withdrawal, it does not matter whether you file the 1099-B and 1099-D with the IRS to report the income. The 1099s are not due until the payment is received, no earlier than the end of the second payment period as reported in your 1099-R. Step #10 — File With Fidelity Your Taxes on the SEP with 1040X if you have a SEP-IRA and 1040X if you do not Step #11 — Fidelity sends you a copy of your 1099-K and 1099-R.
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