There are currently rules providing a grace period for people who procrastinated on saving for retirement in 2015. This grace period extending into 2016 will give people extra time to contribute money into an IRA, Roth IRA, or SEP-IRA. A SEP-IRA helps people who are self-employed save for a retirement plan. It is possible to set up a SEP-IRA account for a prior tax year, and can open and fund the account until the due date of a 1040 income tax return. There are different rules and requirements for SEP-IRA contributions that depend on a person’s individual circumstances and whether or not the contributions are coming from themselves or an employer. This article discusses the factors a person should consider when comparing a traditional IRA with a SEP-IRA and how they should apply to their own estate planning.
See Ashlea Ebeling, Tax Season Retirement Savings Strategies For Procrastinators, Forbes, March 4, 2016.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
