Guest heike Posted June 28, 2006 Report Share Posted June 28, 2006 Hi All! I need some help with my retirement planning. (Time is running short) For the last years I have always contributed the max to my roth ira, but would like to save some more in tax deferred plans. With my house cleaning (4 - 5K per year income minus expenses) internet sales ( 1 K per year), does it make sens to have a SEP or SIMPLE plan? How much would I be able to contribute? 25% of profit from each business, or a total amount per year? How do I start up a plan for myselve? Does it even make sense to have one, or is the cost more than it's worth? Link to comment Share on other sites More sharing options...
Belgarath Posted June 28, 2006 Report Share Posted June 28, 2006 There's not enough information in your post to provide a really good answer, but it appears that a SIMPLE might be your best option. I'd look at IRS publication 560 if I were in your shoes, which will answer most of your questions. Link to comment Share on other sites More sharing options...
Bird Posted June 28, 2006 Report Share Posted June 28, 2006 I agree. With a SIMPLE IRA, you can shelter up to 100% of your income, up to the $10,000 limit (plus $2,500 catchup if over age 50). There's small required employer contribution too; 2% or 3% depending on how you set up the plan. Ed Snyder Link to comment Share on other sites More sharing options...
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