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Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76421  
Subject: Re: IRA options for the partially self-employed Date: 8/21/2000 7:13 AM
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I have full-time job with an employer that offers no retirement plans (403b, SEP, or otherwise). I also run a (very) small business "on the side". I have Roth IRA to which I anually contribute the maximum amount. My questions:

1) If I open a SEP, is my contribution limited by total income or just income from self-employment?


The latter.

If the latter:

2) Is the limit based on gross sales, gross income, or profit?


Net income from self-employment (the bottom line of Schedule C). There are little quirky things that have the effect that you can't contribute the maximum percentage of net income, but that's the closest figure of the three you offered.

3) Are there any other tax-deferred options available to get me closer to the 15% total-income-limit for those with 401(k) plans or who are wholly self-employed?

Check out Keough plans in IRS Publication 560. Your other options regarding self-employment income are covered there also.

TMF ExRO
Phil Marti
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