UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: Re: SEP VICE 401K Date: 3/23/1998 8:51 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Greetings, Gillildraw, and welcome.

<<AS A SELF EMPLOYER WHAT KIND OF SEP ACCT IS ADVISABLE TO INVEST IN?

IS A SEP TAX DEDUCTABLE OR SHOULD I GO WITH A ROTH?


THANKS IN ADVANCE FOR ANY ADVISE, STEVE SENT ME HERE FOR THE BEST ADVISE!!>>

Ouch!!!! How about turning off that Caps Lock key so my eyes don't hurt so much, o.k.? And BTW, if no one has told you before, typing in all caps in cyberspace is considered shouting and somewhat rude. I know that's not the impression you wish to leave.

As to your question, I can't tell you what is "best" for you because that varies from person to person. Only you can decide that. You want to obtain IRS Publication 560, Retirement Plans for Small Business, in which various plans such as SEP, SIMPLE, and Keogh are discussed. These have various features for the self-employed person to defer up to 25% or $30K per year from current net income into a retirement plan. Just like an IRA, the money so deferred is untaxed today and is allowed to grow with all earnings untaxed as well. That is what makes an IRA and these plans "work" -- You don't get taxed today, so the power of compounding can work its magic on the growth in your savings. For a self-employed person, something like the SEP is a "better" vehicle than a traditional IRA because it allows you to put more money aside free of taxes. An IRA is limited to just $2K per year, which is fine but not enough to build a really healthy retirement stash. You can read about IRAs in IRS Pub 590, Individual Retirement Accounts. Both of these publications can be downloaded at:

http://www.irs.ustreas.gov/prod/forms_pubs/index.html .


Get both, read both. They will give you some understanding of the issues involved. Then come back here with any questions you may have. We'll be glad to help wherever we can.

Regards.....Pixy

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement