Latest news with #SimplifiedEmployeePension
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
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
02-03-2025
- Business
- Yahoo
Are There Hidden Tax Benefits You're Missing This Year?
Many taxpayers miss out on the chance to lower their tax bill because they don't realize they qualify for valuable benefits. Read More: Consider This: From overlooked deductions and credits to strategic retirement contributions, there are several ways for taxpayers to reduce their tax bill while keeping more money in their pockets. However, many don't know what they are. 'Tax planning isn't just about filing returns — it's about taking a proactive approach to minimizing tax liability,' said Melissa Pavone, founder of Mindful Financial Partners. She said taxpayers can benefit from their contributions to traditional IRAs and 401(k)s using the backdoor Roth IRA strategy, or through self-employment retirement plans. 'Contributions to pre-tax retirement accounts reduce taxable income while allowing for long-term, tax-deferred growth,' Pavone said. 'The 2024 contribution limit for 401(k) plans is $23,000, with an additional $7,500 catch-up contribution for those 50+.' Pavone said high-income earners who exceed Roth IRA income limits can contribute to a non-deductible traditional IRA and later convert it to a Roth IRA, taking advantage of future tax-free withdrawals. IRS Updates Earned Income Tax Credit for 2025: One of the most significant tax benefits for freelancers or small business owners is choosing the right entity structure for their business. 'Choosing properly between an LLC or a corporation, and choosing an S-Corporation status, will have a massive tax impact,' said Crystal Stranger, attorney and CEO of 'But this isn't a 'one-size-fits-all' decision, and there are many pros and cons to each structure.' Stranger explained, 'It should be a careful decision made with a competent advisor who understands both your personal financial situation and your short- and long-term business goals.' Self-employed individuals often qualify for a home office deduction. 'The reason this is so valuable goes beyond being able to take a chunk of the home expenses you normally would be able to take,' Stranger said. 'You can also then take more mileage or auto expenses because there are no longer commuting costs to reduce your business mileage when your home is your main office.' In addition, Pavone said freelancers can contribute up to $69,000 to a Solo 401(k), with an additional $7,500 catch-up contribution for those over 50, or a SEP (Simplified Employee Pension) IRA. Individuals can contribute up to 25% of their earnings, with a maximum of $69,000, for massive tax savings. Some medical costs are eligible as an itemized deduction, depending on an individual's tax strategy. 'However, since the TCJA (Tax Credits and Jobs Act of 2017) changes to itemized deductions and increasing the standard deduction, this has not been something utilized as often,' Stranger said. 'The total amount of itemized deductions needs to exceed the standard deduction before having any value.' Stranger further explained, 'If you do have a year of high medical costs, it is also good to load mortgage interest, property tax and charitable deductions in the same year so that it can be taken to exceed the standard deduction.' Long-term, uncovered health coverage may also be tax deductible. 'One often forgotten tax deduction is uninsured long-term costs for seniors,' said Kevin Quinn, founder and president of Legacy Counsellors, an estate and business planning law firm. 'Home health or nursing home care is a Schedule A deduction.' 'It is missed in most cases because many seniors don't itemize their deductions,' Quinn explained. 'It is important to look at the standard deduction versus the Schedule A deduction to see which is most financially beneficial before filing.' In addition, Quinn said individuals don't get the deduction on uninsured medical and dental expenses for the first 7.5% of their income. 'You can only deduct expenses on the Schedule A 1040 that total more than 7.5% of adjusted gross income,' he concluded. More From GoBankingRates6 Reasons Your Tax Refund Will Be Higher in 2025 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth How Much Money Is Needed To Be Considered Middle Class in Every State? This article originally appeared on Are There Hidden Tax Benefits You're Missing This Year? Sign in to access your portfolio
