Rutgers New Jersey Agricultural Experiment Station [Later Life Farming]

Module 10d: Planning for a Secure Retirement

Planning for a Secure Retirement is a series of 10 modules on retirement-related topics developed by Purdue University Cooperative Extension. Of particular interest to farm families is Module 7: Are You Self-Employed and Responsible for Your Own Retirement? Topics covered in this module include Simplified Employee Pensions or SEPs and SIMPLE plans. The module also includes a helpful table that compares the features of different retirement savings plans for self-employed individuals.

Focus groups of New Jersey farmers indicated a dislike for SEP and SIMPLE retirement savings plans because employers are required to cover all qualifying employees if they contribute for themselves. If this is the way you feel, also, consider an individual retirement account (IRA) as an alternative. Information about IRAs is covered in Module 8: Do You Have an Individual Retirement Account?

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