How I Started A SEP IRA Retirement Plan
Recently my employer offered me the opportunity to participate in a tax-favored retirement savings plan called a Simplified Employee Pension (SEP) plan. Under the plan, my employer will make tax-deferred contributions to a SEP IRA(a type of individual retirement account) established in my name. So I started saving money for my retirement days in three easy steps. First of all, he gave a copy of IRS Form 5305-SEP which I had to read and sign. Then I had to fill another form called SEP-IRA New Account Form. This is the interesting step because you can decide to just save the money or invest them in individual stocks, bonds, CDs, options, or mutual funds from other companies. Then the last step was to mail the signed adoption agreement to the service provider.
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