Every Retirement Plan has its own advantage and disadvantage.
Simplified Employee Pension SEP IRA
A simplified employee pension SEP IRA permit you to contribute a part of your income to contribute a some part of your income to your retirement plan if you have employees and self employeed.You can deduct these taxable amount from your taxable income.
Roth IRA contributions are made with after tax dollars.however any amount is generated within the Roth is never taxed again.You can takeout contributions you have made to a Roth IRA before retirement age without penalty with the condition that you have pass five years since your first contribution.
A 401(K) is a retirement plan that offered as an employee saving advantage.This account facilitate you to contribute a portion of pre tax amount to tax deferred investments.It decrease the money you must pay taxes on that year. If you were earn $120,000 and contribute $10,000 to your 401 K you would only be taxed on $1,10,000.If you withdraw money from plan before age of 59 and six months you could pay a penalty of 10%.That withdrawal would be subject to state and federal income taxes.