My husband is about to start a new job with a very small company, and they offer a SEP IRA instead of a 401k. From what I've been reading, it's kind of like a 401k, except that the employer has to give all of their employees a set percent of their salary into this retirement account. This amount is higher than most employers give for 401k match, and you get it regardless of whether the employee contributes to the account. The employee can contribute, but the limits follow IRA limits rather than 401k limits. Does anyone here have experience with SEP IRAs? They seem great if you are focused on retirement planning, but I wonder if it might not be better to just have a higher salary.
