Tag Archives: Sep IRA

Tax Savings Ideas You Can Do NOW To Save Last Year (2017) Taxes – Part 2 – THE SEP – Simplified Employee Pension

Last week we started our tax season discussions here (- the HSA) with a favorite “Last Year” tax savings ideas that can be done this year …

This week another super saving idea … Think of this as an IRA on steroids – due to high limits and ample flexibility!

The SEP – Simplified Employee Pensionseptember-706937__340

Here are just a few reasons why we love the SEP for the correct situation:

  • Offset 1099 or other consulting like – non W-2 income in a pre-tax form
  • An IRA can be used to accept a SEP contribution in many cases – no new account needed
  • Can be used in conjunction with a 401k – Only need 1099 income – High Contribution limits apply
  • High Maximum Deferral amount $54k – yes that is correct FIFTY FOUR THOUSAND of pre-tax dollars as long as that is no more than 25% of Adjusted Gross Income
  • Can make SEP contributions even after RMD (Required Minimum Distributions) Begin
  • Can make your contribution even after the regular tax deadline if you file an extension – This really makes a SEP valuable and give us plenty of time to make the contribution again for LAST year’s tax savings

There are certain limitation and restrictions as mentioned, so don’t just make a contribution unless you are sure it will work for you … or just reach out to us!

Have a Great “SEP” Tax Savings Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.

The SEP – Simplified Employee Pension – A Favorite Tax Deductible plan !

This week we bring you another tax strategy that may save you extra dollars, while not mandatory (or even recommended) before the end of the year – we thought it would go well with our year end tax savings series.

Recently in our end of the year tax strategies, we discussed the HSA ,visited Pushing Income , Optimizing Donations, and IRA Distribution, and the Roth Conversion  to maximize your tax deductions. This weeks topic is the SEP or Simplified Employee Pension !

If you have Non W-2 income, think consulting SEP IRAincome – a SEP can be used to make a deductible contribution against that income! 


  • Offsets Non-W-2 income
  • Can set aside 25% of the adjusted income – after expenses
  • High maximum of $53k in 2015 – careful with other plan integration- see next
  • Can be integrated with other plans- upper limits still exist
  • Invested in almost any asset – think of it as a super IRA because of the higher amount of contributions

Check with your tax professional or ask your tax software provider to “Maximize deductions” … Not to worry, we will remind again during tax season!!

Any questions– just reach out- we will be glad to help!

Have a Great — Less Taxable — Day!

John A. Kvale CFA, CFP

8222 Douglas Ave # 590
Dallas, TX 75225