A non-qualified (non-retirement) brokerage account is one of the most flexible investment vehicles we have available to us. Standard brokerage accounts do not have limits on how much money can be contributed, however they do not have the favorable tax treatment that retirement accounts have. Essentially, standard brokerage accounts will generate 1099’s on a yearly basis with taxable dividends and capital gains distributions. While retirement accounts must be in individual name only, a non-qualified brokerage account can be titled in almost any way imaginable – from trusts, to individual, to joint ownership.

A non-qualified account can hold most any type of security, dependent on the firm where the account is established having all of them available. When a sale of a security is made in a non-qualified account, the individual would owe a capital gain tax on the difference between what it cost to purchase the security and what it was sold for.To be eligible for a SEP IRA, an employee must be at least 21 years old, have been with the company for 3 years, and have at least $650 of compensation. There is no rule that an employer MUST contribute to employees’ SEP IRA’s. Rollover rules for a SEP are very similar to rollover rules of a Traditional IRA. Funds from a SEP can be rolled into a traditional IRA. SEP IRA’s have a vast amount of investment options, like traditional IRA’s. Unlike a 401k, no loans can be made from an employee’s account. While that isn’t EVERYTHING there is to know about SEP’s, hopefully it’s a good start. If you have further questions, feel free to contact us!