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Business Wire
28-05-2025
- Business
- Business Wire
PensionBee Launches SEP IRAs To Include Non-Traditional Retirement Savers
NEW YORK--(BUSINESS WIRE)--PensionBee, a leading online retirement provider, announced today the launch of Simplified Employee Pension (SEP) IRAs in its digital platform. This offering provides a best-in-class retirement solution designed for self-employed individuals. Self-employed Americans consistently report lower levels of retirement preparedness. Only about 13% of self-employed individuals in single-person businesses participate in retirement plans, compared to nearly 72% of traditional employees. Share The launch comes at a critical time as the gig economy continues its rapid expansion. By 2025, gig workers are expected to make up nearly 50% of the U.S. workforce. This structural shift in employment patterns has created an urgent need for retirement solutions tailored to non-traditional workers, as traditional employer-sponsored retirement benefits become inaccessible to a growing segment of the workforce. Self-employed Americans consistently report lower levels of retirement preparedness. Only about 13% of self-employed individuals in single-person businesses participate in retirement plans, compared to nearly 72% of traditional employees. Fewer take advantage of SEP IRAs, highlighting a significant opportunity gap. 'Pursuing your passions should not come at the expense of future retirement security,' said Romi Savova, CEO of PensionBee. 'The addition of SEP IRAs to our platform allows us to empower self-employed Americans who may not have access to traditional retirement plans. Everyone deserves to plan for and enjoy a happy retirement.' Unlike traditional employees, self-employed Americans lack access to employer-sponsored retirement plans, automatic enrollment, and employer matching contributions that typically boost retirement readiness. This structural disadvantage affects millions of entrepreneurs and independent contractors who represent a growing segment of the American workforce. In response, self-employed individuals are more likely to claim Social Security early, potentially reducing lifetime retirement income. Beyond individual benefits, PensionBee's SEP IRA offering addresses a critical economic need. Small businesses represent over 99% of all U.S. businesses and create approximately two-thirds of new jobs. Despite this, reports show that one in five small business owners don't have any retirement savings, and the majority have saved less than $50,000. By providing modern retirement solutions for single business owners, PensionBee not only supports individual financial security but strengthens the economic foundation of American entrepreneurship. PensionBee's SEP IRA allows individual account owners to contribute up to 25% of their income, significantly higher than Traditional IRA limits, creating a powerful vehicle for retirement wealth accumulation. This higher contribution ceiling enables entrepreneurs to make up for periods of variable income and accelerate their retirement savings during profitable years. PensionBee's SEP IRA offers a complete solution for self-employed individuals: Consolidation of existing accounts: Users can transfer old retirement accounts (Roth IRA, Traditional IRA, or 401(k)) into one manageable account Higher contribution limits: SEP IRAs allow contributions of up to 25% or $70,000 of income, maximizing tax-advantaged savings Human Support: Easy setup and management with dedicated human support Retirement planning tools: PensionBee's in-app retirement calculator allows users to model various scenarios to work toward savings goals The SEP IRA offering is available immediately to all self-employed individuals and single business owners. PensionBee users can begin the setup process now with dedicated BeeKeepers available to guide them through account creation. The addition of SEP IRAs represents a significant milestone in PensionBee's mission to democratize retirement planning for all Americans, regardless of employment status. The company plans to continue expanding its offerings to address the evolving needs of today's diverse workforce, with additional features and educational resources specifically designed for self-employed savers planned for later this year. PensionBee's SEP IRA is the latest addition to a robust offering of retirement account types, including Traditional, Roth and Safe Harbor IRAs. About PensionBee PensionBee (LON: PBEE) is a leading online retirement provider, helping people easily consolidate, manage, and grow their retirement savings. The company manages approximately $8 billion in assets and serves over 275,000 customers globally, with a focus on simplicity, transparency, and accessibility. For more information about PensionBee's SEP IRA offering, visit
Associated Press
28-05-2025
- Business
- Associated Press
PensionBee Launches SEP IRAs To Include Non-Traditional Retirement Savers
NEW YORK--(BUSINESS WIRE)--May 28, 2025-- PensionBee, a leading online retirement provider, announced today the launch of Simplified Employee Pension (SEP) IRAs in its digital platform. This offering provides a best-in-class retirement solution designed for self-employed individuals. The launch comes at a critical time as the gig economy continues its rapid expansion. By 2025, gig workers are expected to make up nearly 50% of the U.S. workforce. This structural shift in employment patterns has created an urgent need for retirement solutions tailored to non-traditional workers, as traditional employer-sponsored retirement benefits become inaccessible to a growing segment of the workforce. Self-employed Americans consistently report lower levels of retirement preparedness. Only about 13% of self-employed individuals in single-person businesses participate in retirement plans, compared to nearly 72% of traditional employees. Fewer take advantage of SEP IRAs, highlighting a significant opportunity gap. 'Pursuing your passions should not come at the expense of future retirement security,' said Romi Savova, CEO of PensionBee. 'The addition of SEP IRAs to our platform allows us to empower self-employed Americans who may not have access to traditional retirement plans. Everyone deserves to plan for and enjoy a happy retirement.' Unlike traditional employees, self-employed Americans lack access to employer-sponsored retirement plans, automatic enrollment, and employer matching contributions that typically boost retirement readiness. This structural disadvantage affects millions of entrepreneurs and independent contractors who represent a growing segment of the American workforce. In response, self-employed individuals are more likely to claim Social Security early, potentially reducing lifetime retirement income. Beyond individual benefits, PensionBee's SEP IRA offering addresses a critical economic need. Small businesses represent over 99% of all U.S. businesses and create approximately two-thirds of new jobs. Despite this, reports show that one in five small business owners don't have any retirement savings, and the majority have saved less than $50,000. By providing modern retirement solutions for single business owners, PensionBee not only supports individual financial security but strengthens the economic foundation of American entrepreneurship. PensionBee's SEP IRA allows individual account owners to contribute up to 25% of their income, significantly higher than Traditional IRA limits, creating a powerful vehicle for retirement wealth accumulation. This higher contribution ceiling enables entrepreneurs to make up for periods of variable income and accelerate their retirement savings during profitable years. PensionBee's SEP IRA offers a complete solution for self-employed individuals: The SEP IRA offering is available immediately to all self-employed individuals and single business owners. PensionBee users can begin the setup process now with dedicated BeeKeepers available to guide them through account creation. The addition of SEP IRAs represents a significant milestone in PensionBee's mission to democratize retirement planning for all Americans, regardless of employment status. The company plans to continue expanding its offerings to address the evolving needs of today's diverse workforce, with additional features and educational resources specifically designed for self-employed savers planned for later this year. PensionBee's SEP IRA is the latest addition to a robust offering of retirement account types, including Traditional, Roth and Safe Harbor IRAs. For more information about PensionBee's SEP IRA offering, visit View source version on CONTACT: Media Contact: Adela McVicar [email protected] KEYWORD: NEW YORK UNITED STATES NORTH AMERICA INDUSTRY KEYWORD: PROFESSIONAL SERVICES BUSINESS APPS/APPLICATIONS TECHNOLOGY SOFTWARE FINANCE INTERNET SOURCE: PensionBee Copyright Business Wire 2025. PUB: 05/28/2025 09:14 AM/DISC: 05/28/2025 09:13 AM
Yahoo
26-05-2025
- Business
- Yahoo
Retirement savings: How can you save without a 401k?
(NewsNation) — Even if you don't have a 401(k), there are several ways you can make sure you are saving for your retirement. According to Fidelity, some of the other options you can consider include IRAs, SEP IRAs and self-employed 401(k)s. Are people 'panic buying'? Economist explains which big purchases you may want to make now Here are some of the ways you can save for retirement without a 401(k): An individual retirement agreement, or an individual retirement account, can be opened by anyone who has earned income. This includes those who might not have a job, but have a spouse who is employed. When choosing an IRA, you will need to choose between a Roth IRA and a traditional IRA. Summer travel may actually be cheaper to certain destinations, expert says A Roth IRA will allow your contributions and earnings to grow tax-free. You will be able to withdraw the money from your Roth IRA tax-free after you turn 59½, as long as your account has been open for at least five years. A traditional IRA allows you to contribute money before or after taxes. You can grow your money tax-deferred, however, you will pay ordinary income tax on your withdrawals. Also, you have to start taking distributions after you turn 73. There are no income limitations to opening a traditional IRA, unlike with a Roth IRA. A Simplified Employee Pension plan, or SEP IRA, could be a good option if you are self-employed or have freelancing income. If you are a sole proprietor or part of a partnership, C-corporation or S-corporation, you are eligible for an SEP IRA. Recent college grads face toughest job market in years Your contributions could be tax-deductible, according to Fidelity. Typically, employees aren't allowed to contribute, and only employers can. There is an option for employees to be able to make traditional IRA contributions, but these would count toward the annual limit for IRAs. If you want to set up an SEP IRA, you will need to do so before the federal income tax filing deadline. If you are self-employed, you could start a self-employed or solo 401(k). This also applies to you if you own a business or partnership that has no employees or if you have a spouse who works in the business. You can contribute to a self-employed 401(k) in two ways: as the employee and again as the employer. As an employee, you can make a tax-deductible or Roth contribution of up to 100% of what you are paid up to a maximum. Once you are over 50, you can make catch-up contributions. Texas woman who won $83.5 million jackpot still not paid 3 months later, sues Texas Lottery Commission As the employer, you can contribute up to 25% of your earnings that are considered eligible. These contributions will always be before taxes. As a small business owner, you could save a lot of money each year with a self-employed 401(k). The deadline to set up a plan is the employer's tax filing deadline. Other plans to consider are SIMPLE IRAs and a health savings account. A SIMPLE IRA is similar to a 401(k) in that it offers before and after-tax contributions. It also has an employee contribution and employer match. If you are self-employed or a small business owner, you can open a SIMPLE IRA. Trump tariffs set to collide with back-to-school shopping A health savings account, or HSA, you can benefit from tax deductions, tax-free growth potential and withdrawals that are tax-free to pay for any qualified medical expenses. These expenses could be paid for before or after your retirement. Then, after you turn 65, you can withdraw money from the HSA without facing any penalties. However, you will owe taxes on contributions and earnings. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
20-04-2025
- Business
- Yahoo
Reinvesting Your RMD as a Retiree? Here's What You Need to Know
If you're retired and have a tax-deferred retirement account -- like a traditional IRA, SEP IRA, SIMPLE IRA, 401(k), 403(b), or other employer-sponsored plan -- you're undoubtedly aware that you must start taking required minimum distributions (RMDs) once you reach a specific age. But what if you don't need the money to help you cover everyday expenses? What if you'd rather reinvest the funds as soon as they're withdrawn? If you've hit age 73 (or 75 for those born in 1960 or later) and you find yourself withdrawing RMDs you don't immediately need, here's what you should know about investing the money elsewhere. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » There's no one-size-fits-all way to take an RMD. Let's say you have several IRAs. Your RMD can be calculated on the total amount in all your accounts, and you can draw from one or several of your IRAs. As long as you meet the overall RMD requirement, you're good. Let's say you've got a big vacation planned or want to complete home improvements. If you'd like to withdraw more than the required RMD, you're free to do that as well. The IRS is not terribly understanding when retirees fail to take their RMDs. In fact, failure to do so can result in a 25% penalty on the amount you should have withdrawn. For example, if your RMD is $10,000 but you forget to take it, the resulting excise tax would be $2,500. The IRS is not totally without a heart, though. If you make it up by taking the RMD within two years, the penalty is reduced to 10%. No matter what you decide to invest in, the result is likely to be better than losing 25%. Since you didn't pay taxes on the funds when they were initially invested, the government wants its share once withdrawals are made. Your withdrawals are included in your taxable income for the year. Once you've withdrawn money from a tax-advantaged retirement account, you generally have to be eligible to make contributions to an IRA in order to get it back into another tax-advantaged takes earned income from a job, which most people at or above RMD age don't have. Not quite sure where your money will work hardest for you? Here are a few ideas to get you started: If you're looking for a steady retirement income stream, consider using RMD funds to buy an annuity. Hoping to give your money additional room to grow? Reinvest your RMD in stocks, bonds, a mutual fund, or exchange-traded funds (ETFs). If owning real estate in retirement is of interest to you, consider using RMD funds to invest in real estate investment trusts (REITs) or even purchase a rental property. Consider using RMD funds to make life easier for yourself or someone else. For example: Put money into an account designated to cover medical expenses as you age. Make charitable donations. Give money to family or friends. Pay off any debt you still carry. If your dream is to age in place, add features to your home that will make it easier. If there's someplace you've always dreamed of visiting but have never had the time, consider using RMD funds to make it a reality. Whether you invest RMD withdrawals in stocks, bonds, real estate, or the ongoing work of a meaningful charity, it's your money. Do what's right for you. If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known could help ensure a boost in your retirement income. One easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these Motley Fool has a disclosure policy. Reinvesting Your RMD as a Retiree? Here's What You Need to Know was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
18-04-2025
- Business
- Yahoo
I'm a Millennial: 4 Ways I'm Cutting Back During Tariff Uncertainty
With prices rising unpredictably due to shifting tariffs and trade tensions, many millennial workers are tightening their budgets as they feel the pinch. Read Next: Find Out: In this uncertain economic climate, one millennial shared the real-life adjustments she and her husband are making to stay financially afloat, from cutting nonessentials to finding smarter ways to stretch every dollar. Here's how they're cutting back and responding to a time of economic uncertainty. While some people have been surprised by President Donald Trump's tariffs, Ana M., age 34, a content marketer and ghostwriter based in Connecticut, said, 'As soon as Trump was elected, we knew that tariffs were coming.' As a result, she said she and her husband took stock of everything that they'd need to replace soon that would likely be impacted and preemptively replaced them, including the battery in her husband's car, which was on its last legs, and her phone, which has a broken speaker. Aside from that, they began cutting down on spending immediately, even before Trump was in office knowing that tariffs would be coming and 'potentially a contributing factor to a recession,' she said. Learn More: Ana and her husband are 'very concerned' about a possible recession and so are prioritizing liquid savings for the time being. 'My job is particularly high risk and has already been impacted by multiple economic conditions, so we want to prepare for that,' she said. They're making strategic cuts where they can, such as reducing a live TV Hulu subscription ($120 per month) to a basic plan that is just $29 per month. 'We've also stopped pretty much all nonessential spending and splurge purchases, outside of local experiences. Instead of getting gifts this year for our birthdays, we went to a hockey game,' she said. They've also begun to feel the pinch of increased prices on many of the items they consider 'essentials' such as home goods and cleaning supplies. While they are continuing to buy the products they prefer, even at higher prices, they have put off some larger purchases such as gutter guards and a home generator, which were impacted by tariffs. Another casualty of this time of high-tariff uncertainty is that it's drawing out the timeline in which she and her husband were originally going to pay off their mortgage. Instead of making extra big payments to speed that process along in 15 years, now, she said, 'We're holding onto those funds so we have extra cash on hand in case my business struggles in the near future.' The tariffs are also changing how they invest. They're putting more money into accounts that they have easy access to, including high-yield savings, CDs and Roth retirement accounts, instead of the SEP IRA she typically uses. 'I'm taking a hands off approach for the time being, as I've got the majority of my portfolio currently in relatively 'safe' funds like the S&P 500,' she said. She's seen a significant drop in her portfolio value, but since she has a long way to retirement, her strategy is to leave it be and let it recover. Ana feels that her unique experience as a millennial has helped her prepare for bumpy economic times. She started college during the Great Recession of 2007-2009 and graduated in 2012 to find that many local businesses in her area had shuttered. After struggling to find a good job, she started her own business. Though that experience taught her to be more 'risk averse,' a skill she and her husband also used during the COVID-19 pandemic, she feels more uncertain now about the economy than she ever has. 'The tariffs and other economic conditions are more concerning to me this time around, because they feel much more man-made and it does not feel like we have a good faith effort from the administration to resolve the issues.' She's concerned that tariffs and their economic impact will be dragged out for an extended period of time. Ana believes that the best thing millennials can do right now is prepare for increased costs and potential difficulties with unemployment. 'That emergency fund is never more important than when you may struggle to get a new job if you lose your current one, and as prices are increasing from tariffs and inflation, I think it's smart to have more saved than you might think you need.' Like many people, Ana and her husband are preparing for the worst and hoping for the best. More From GOBankingRates 5 Types of Vehicles Retirees Should Stay Away From Buying 4 Affordable Car Brands You Won't Regret Buying in 2025 4 Things You Should Do if You Want To Retire Early 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth This article originally appeared on I'm a Millennial: 4 Ways I'm Cutting Back During Tariff Uncertainty
