The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: IRA, Roth IRA, and SEP Date:  1/15/2014  5:59 PM
Author:  TMFPMarti Number:  119860 of 127519

In addition, for our SEPs I could add $8k ($40k * 20%) and my wife could add $200 ($1k * 20%).

A caution here. I know you're dealing in round numbers here, but if your Schedule C bottom line is a $40,000 net profit, you cannot make an $8,000 SEP contribution. You must reduce the $40,000 by your deduction for 1/2 of the SE tax before applying the 20%.

Rule Your Retirement Home Fool
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us