SEPs are supercharged IRAs, following the same rules but allowing for higher contributions. In 2020, the self-employed can contribute the lesser of (a) $57,000 or (b) 20% of their net adjusted income (gross income from self-employment minus expenses and half of one’s self-employment tax).
The federal government has kept the annual contribution limits on some of the popular qualified retirement plans. So you won’t be able to put in anymore into your workplace retirement account in 2021.
What does the new rule mean for you? If you have a 401(k), the advisor fees might come down. If you roll over the 401(k) to an IRA, the fees in the IRA should be identical to what they were in the 401(k). If they are not, then the advisor must pledge to do what is in your best interest.
By striking a balance between new protections for consumers with additional burdens on the financial services industry, Financial Advisor Tim Hayes believes the Department of Labor (DOL) hit a home run with their new retirement advice rule. Fixing the Law By eliminating a 1975 rule, made when pension plans were