First Republic Private Wealth Management includes First Republic Trust Company; First Republic Trust Company of Delaware LLC; First Republic Investment Management, Inc., an SEC-Registered Investment Advisor; and First Republic Securities Company, LLC, Member FINRA/ SIPC.
Contributions to a traditional IRA reduce your AGI (Adjusted Gross Income) and lower your taxes. Your contribution must be made by April 15 following the tax year to be deductable. Contributions to a Roth IRA do NOT reduce AGI and do not lower your current taxes.
But even before the employee has reached these barometers, the employer can still choose to set up employees with SEP accounts. Contributions to the SEP-IRA account are tax deductible. Unlike the Roth IRA, any investment earnings will be taxed as ordinary income upon withdrawal.