Hi Fools!I am the sole employee of an S-Type Corporation. I am the majority shareholder (90%) and there is only one other shareholder (10%).Right now, I personally have a Roth-IRA, but I would like to also set up a retirement plan with the corporation for myself.Since I have an S-Type Corporation, I pay myself a low salary ($24k/year currently, but will probably raise it a bit soon) to avoid paying Social Security and Medicare taxes as much as I can (FYI I'm only 21 years old).These are the retirement plans I know of and what I know about them:SIMPLE-IRA- No percentage, which is good for low salaries, up to $9k ($10K in 2005 and more for both for individuals over 50).SEP-IRA- 15% of salary up to $40k.One-Person 401(k)- 25% of salary up to $40k.- Simplified paperwork in comparison to regular 401(k)- The "one person" refers to companies where only the owners or owners' spouses are employees.- You can borrow fom the account (not that I ever would).The 401(k) looks attractive, but even if I started to pay myself $40k/year (which I would rather not when the corporation earns under $100k/year and I can easily convince the IRS that I don't deserve a large salary -- it's an internet based business that makes all of it's money off of an automated advertising system) I still would only be able to contribute $10k. For a low salary the SIMPLE-IRA looks like a good plan, but am I missing any other options? This is all very new to me.Does anyone have any recommendations or books/places for further reading?Once I feel knowledgable enough, I will be talking it over with an accountant.Thanks!
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