. Kevin deposits $1423.62 each quarter into an annuity account for his child's college fund in order to accumulate a future value of $85,000 in 12 years. How much of the $85,000 will Kevin ultimately deposit in the account, and how much is interest earned?

Q: A newborn child receives a $4,000 gift toward a college education from her grandparents. How much…

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Q: Mina, who is single, would like to contribute $6,500 to her Roth IRA. Her AGI is $144,000 What is…

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Tax Deferred Retirement Benefits

It stands for Simplified Employee Pension Individual Retirement Account. This savings plan is for self-employed persons such as independent contractors, freelancers, entrepreneurs, etc. The tax rules of SEP IRA are the same as traditional IRA. Entrepreneurs can also open SEP IRA accounts for their employees and gain a tax advantage. The employees cannot make contributions to these accounts by themselves however they will be taxed upon withdrawal.