Life–let alone, retirement–can be expensive. Thus, it’s not uncommon for many Americans to hold down a side hustle to earn a few extra dollars. For some, that may mean getting a legitimate second job, while others may look to turn a hobby into a source of extra income. If you decide to go the way of turning a hobby or interest into a business, be sure that you take advantage of the retirement savings benefits. Yes, you can use a small business, side gig to help bolster your nest egg, thanks for SEP IRAs. A SEP (Simplified Employee Pension) IRA can be easy to setup and relatively inexpensive. If you own your own business, you can easily make contributions and once the money enters the IRA, it gets treated just like any other IRA money and follows the same rules as other IRAs. Like a traditional IRA, the funds in a SEP IRA are taxed upon distribution and can be subject to early distribution penalties if taken before age 59 1/2. However, one big advantage that SEP IRAs have is a higher contribution limit (up to $56,000 annually). While chances are very slim that your side gig will allow you to contribute $56,000 to an IRA, you can still make smaller contributions. Putting away even just an extra few thousand dollars a year can have a big impact on your retirement savings over time. Furthermore, a self-employing side job can be carried into retirement and used as a source of extra income and a way to stay active. That extra income may even allow you to limit the distributions you take from your retirement accounts to just required minimum distributions (RMDs). As with any retirement account, you will want to make sure that you set it up properly and follow the rules. Therefore, you will want to speak with a certified financial planner before setting up a SEP IRA to make sure it’s the right move for you.