Lawrence is self-employed and wants to establish the simplest type of retirement plan. He should set up a

Question

Quizplus · Accepted Answer

A SEP (Simplified Employee Pension) plan is the simplest type of retirement plan for self-employed individuals. It's easy to set up and maintain and offers high contribution limits. Unlike a Regular or Roth IRA, a SEP plan allows for contributions from both the employer and the employee (in this case, both would be Lawrence since he's self-employed). A 401(k) plan is more complex and expensive to establish and maintain, and a Spousal IRA would only be applicable if Lawrence had a non-working spouse.

Lawrence Is Self-Employed and Wants to Establish the Simplest Type