We built Catch to enable people to pursue careers they love and to encourage folks to follow their dreams. Leaving a 9–5 to go out on your own is a bold journey, but the journey shouldn’t be stopped or second guessed just for benefits like retirement, tax withholding, and health insurance. That’s why we created Catch. I’m excited to announce that we’re one step closer to our vision of creating a new personal safety net that is accessible, affordable, and effective with the launch of SEP IRAs.
SEP IRAs — Simplified Employee Pension Individual Retirement Accounts — are an important vehicle for financial stability. With higher contribution amounts, Catch users are now able to set aside more money for the future, their dreams, and their families.
SEP IRAs allow you to add money when it’s convenient — up to 25 percent of annual income or $61,000 — and Catch makes it completely automatic. SEP IRA contributions are tax-deductible, helping offset income taxes.
Here’s everything you need to know about SEP IRAs
These questions are provided for informational purposes only. Please consider your own tax situation and investment objectives before making any decisions on retirement.
What is a SEP IRA?
Often mistakenly referred to as a “Self Employed IRA”, SEP IRA stands for Simplified Employee Pension (SEP) and is a flexible retirement plan that allows you to contribute more when business is strong and to cut back as needed. Self-employed people can use SEP IRAs, and do not have to have additional employees.
How much can you contribute to a SEP IRA?
The amount you can contribute or put in is percentage-based and capped at a certain amount. For the year 2022, individuals can contribute the lesser of 25 percent of their income or $61,000. These amounts change each year per IRS guidelines.
What type of portfolio should I choose?
When building your investment portfolio, it’s important to consider your lifestyle and when you’ll likely want to use the money you’re putting aside. If retirement is quite some time away and you have time to handle inevitable market fluctuations, that’s great. But if retirement is in the near future, it may be wise to be more conservative and go for stable investments.
What’s an ESG portfolio?
ESG stands for environmental, social, and governance. It’s a form of sustainable and socially responsible investing. ESG portfolios ensure your money gets invested in funds that act fairly, sustainably, and ethically. In fact, some ESG portfolios have been found to outperform with higher financial returns too.
How does Catch invest my money?
Catch is a registered investment advisor (RIA) with the SEC. RIAs have a fiduciary duty to act in their customers' best interest. You can also learn more about the licenses and legal qualifications Catch and its advisors hold.
What other options for retirement do I have?
In addition to a SEP IRA, Catch also offers Traditional and Roth IRAs. A Traditional IRA allows you to invest pre-tax income, which might save you some money in the long run if you believe your taxes at retirement will be lower than they are now. However, a Roth IRA has lower penalties in the event you ever need to make an early withdrawal.