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Financial Planning / Tax Strategies


Subject:  Simple IRA Date:  2/28/2000  11:01 AM
Author:  yellowrs Number:  30261 of 127616

I'm a slave at a large corporation, having a 401(k) at work, and a modest pension plan for my old age.

As a complete fool, I have salted away $2000 per year in a IRA account and then I rolled them all to a ROTH IRA last year. Ouch! I still have to pay taxes on these capital gain for three more years. And it is so nice, that the IRS sent me a reminder right before Christmas. What a cheerful gift.

Being a slave, I always work and work. So beside my main job, I also have a small business on the side, sole proprietorship, earning anout 16 to 20 grants a year. There is no other employee, just myself. My Big Questions are:

1. Can I set up a Simple IRA from this part time business? As long as the business reports net income for the year?

2. Should I incorporate this business as a Limited Libilities Corporation for tax and liabilities purpopse?

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