What is a Simple versus SEP IRA

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What is a Simple versus SEP IRA

The biggest difference is what it's used for:

A Simple IRA is for business yith about 100 employees.
- employee contribution limit is $17,000, rising to $21,000 for those aged 50 or older
A SEP is for self-employed indivduals, of smller businesses.
- The contribution limit is 25% of compensation or $70,000 for 2025
- And it has flesible funding

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