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Financial Planning / Tax Strategies


Subject:  Re: IRA, Roth IRA, and SEP Date:  1/15/2014  6:07 PM
Author:  TMFPMarti Number:  119862 of 127513

I had remembered (incorrectly it appears) that the number was 25% before exclusions, and that it had generally worked out to 20% overall.

You remembered partially correctly. It does start at 25%, but adjusting for the effect of the SEP contribution gets you down to 20%. Then you still have to adjust for the SE tax deduction.

Peter explains it much better than I. I take the easy way out and phrase it the way I originally did, with a soupcon of "trust me, would I lie?"

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