More Retirement Income

When you feel the time is right to put away more tax deductible money for your retirement, a SEP IRA can be the plan for you. Employers can do this for their employees as it has less paperwork required and offers less restrictions than other plans. The rules for a SEP IRA are as follows.
You can contribute to this IRA until you are 70 1/2 but no further. Contributions can be made till April 15th of the tax year. If you want to withdraw before you are the age of 59 1/2, you will be fined 10% penalty tax, unless one of the exceptions apply to you. You must begin taking money out when you are 70 1/2 years of age.
The benefit is the SEP IRAs are simple and similar to a big IRA and little paperwork is done. The total you can contribute is indexed so you can add as much as you want each year. They are flexible in that way that you can contribute as little as nothing all the way up to the maximum of a given year. Any contribution made by your employer are typically not FICA taxed.