It is a good idea no matter how you look at it. PROVIDED that you can afford the interest and pay the loan back.

1) The money in SEP is always yours. You would save $4000 in tax. Assuming $500 in interest. That means you fund your SEP with $7500. Total outlay $8000 and you end up with $11K. A 37+% return in one year. Where can you get that kind of reurn.

2) If you invest wisely then the $11K will be more when you retire.

3) Sell some loss making stock and fund it. Save some more in tax.

4) Sell some profitable stock NEXT year to pay back the loan.

5) Can you fund the SEP for this year on or before Tax time next year?

Investing in yourself in SEP, IRA, ROTH IRA is the best way to save tax - as long as you can afford it. It looks like that you can.

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Not MBZ nor A/C trained professional but a die-hard DIY and green engineer. Use the info at your own peril. Picked up 2 Infractions because of disagreements. NOW reversed.

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