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This is financial advisor Patrick Munro talking about the difference between an SEP retirement
vehicle and an IRA. Well the real difference lies in what type of job the individual has.
An SEP stands for self employed pension program, so that's a vehicle designed for people that
work for themselves. Realtors, self-employed entrepreneurs, filmmaker, things of that nature.
They're allowed to put money into a vehicle at actually a larger amount. Because they
have a business, they tend to take in more cash flow, things of that nature. Traditional
IRAs are reserved for salary employees, company people really, and it's based on tiers of
income. You know, the more money you make, the more money you're allowed to put in your
traditional IRA. Be it an SEP or an IRA, they both are retirement vehicles and the money
accumulates tax free, designed for the individual when they fully retire. This is Patrick Munro,
financial advisor talking about the difference between an SEP and an IRA.