How can I start a SEP IRA?

[FirstTimer90]

I have a small business (though I use my personal social security number for the business, it's not LLC or S Corp or anything) and related to the business I also have some work as an Independent Contractor - I believe this will let me qualify for a SEP (but please correct me if I'm wrong).

1) am I correct above - do I qualify?

2) How can I set up a SEP on my own? Do I just call fidelity, vanguard, etc and let them set it all up for me?

3) how will I know the amount i can fund each year? My income changes annually and I know there are minimum income requirements as well as maximum contribution limits. Must I wait until the following years's taxes?

The funding portion (#3) I have the most questions about - I hope someone here can help direct me. Thank you

[disneysteve]

It sounds like you would qualify for a SEP-IRA.

Yes, you set one up through the financial service provider of your choice. I currently have mine with Scottrade.

My accountant tells me how much I am able to contribute each year when he does our taxes so yes, I have to wait until then. So I would ask your tax professional.

[FirstTimer90]

It sounds like you would qualify for a SEP-IRA.

Yes, you set one up through the financial service provider of your choice. I currently have mine with Scottrade.

My accountant tells me how much I am able to contribute each year when he does our taxes so yes, I have to wait until then. So I would ask your tax professional.

Thanks Steve. Can I (or do you) contribute to both a Roth and SEP? Or must I use individual 401k if I want to continue contributing to my Roth?

[disneysteve]

Thanks Steve. Can I (or do you) contribute to both a Roth and SEP? Or must I use individual 401k if I want to continue contributing to my Roth?

You can do both a Roth and a SEP. I do both.

[TBH]

I also have a Roth and a SEP (and a 403b from my part time job.) I never come close to the SEP limit so I don't wait to contribute. I contribute a percentage of my earnings every month. Most of my income is from various self employment ventures, so each month I calculate how much I earned and send a percentage to my SEP. I just opened it online through Fidelity when I was ready.