UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Next Thread
Author: MMollygirl Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: Self-employed retirement investing Date: 7/26/2000 11:51 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Please forgive me for re-hashing a topic that I've read a lot about, but I'm simply having trouble understanding it all and need some down-to-earth language. I'm 26 yrs old and trying to get together the information I need to begin a retirement account. I am self-employed (theatre technician) and every dollar I use to invest is after-tax. What would be the best option for me?

Also, as I understand it, with a Roth IRA, I could only contribute $2000/year. Would I be able to contribute more with other plans? Since my occupation is quite vigorous physically, I really don't see myself doing it in 25 or 30 years, and would like to contribute as much as possible to plan for the worst.

Also, I've recently begun investing (only $1000 so far to get my feet wet) and am wondering if the best course of action would be to transfer those stocks to my retirement plan, or keep them as is?

Thank you for any help!
Print the post Back To Top
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23668 of 75340
Subject: Re: Self-employed retirement investing Date: 7/26/2000 11:59 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Greetings, MMollygirl, and welcome. You wrote:

<<Please forgive me for re-hashing a topic that I've read a lot about, but I'm simply having trouble understanding it all and need some down-to-earth language. I'm 26 yrs old and trying to get together the information I need to begin a retirement account. I am self-employed (theatre technician) and every dollar I use to invest is after-tax. What would be the best option for me?

Also, as I understand it, with a Roth IRA, I could only contribute $2000/year. Would I be able to contribute more with other plans? Since my occupation is quite vigorous physically, I really don't see myself doing it in 25 or 30 years, and would like to contribute as much as possible to plan for the worst.

Also, I've recently begun investing (only $1000 so far to get my feet wet) and am wondering if the best course of action would be to transfer those stocks to my retirement plan, or keep them as is?
>>


You and you alone have to decide what's "best" for you as that differs from person to person depending on your goals, tax situation, income, etc.

If you are truly self-employed, your retirement investment options are not restircted to something that's just "after-tax." As a self-employed person you may use a tax deferred plan like a SEP, SIMPLE or Keogh to set aside a substantial part of your income on a pre-tax basis. All potentially (it depends on your net self-employed income)will let you contribute far more than the $2K of an IRA For more information on these plans, see my Foolish Retirement Plan Primer at http://www.fool.com/Retirement/RetirementPlanPrimer.htm. You should also download and read IRS Publication 560 (Retirement Plans for Small Business) available at http://www.irs.ustreas.gov/prod/forms_pubs/index.html.

As to your stocks, those must remain in your taxable account as they cannot be transferred to one of the self-employed plans or to an IRA.

Regards..Pixy

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post Back To Top
Author: mabar2000 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 24436 of 75340
Subject: Re: Self-employed retirement investing Date: 8/29/2000 5:41 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I am a US Citizen working abroad for 5 years now, at a foreing non-profit institution. Although in the past I had established retirement plans with previous employers(Prudential, annuity program, and a Vangard IRA rollover) I have not contributed to those and I do not have a current retirement plan with my present employer. Does somebody know if I would qualify for a Keogh or an H10 plan?. Would the contributions be tax deferred? .
Thank you

Print the post Back To Top
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 24439 of 75340
Subject: Re: Self-employed retirement investing Date: 8/29/2000 7:34 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Greetings, Mabar2000, and welcome. You asked:

<<I am a US Citizen working abroad for 5 years now, at a foreing non-profit institution. Although in the past I had established retirement plans with previous employers(Prudential, annuity program, and a Vangard IRA rollover) I have not contributed to those and I do not have a current retirement plan with my present employer. Does somebody know if I would qualify for a Keogh or an H10 plan?. Would the contributions be tax deferred? .>>

If you have earned income (i.e., job wages) that you claim for income tax purposes (i.e., you have not excluded it as foreign job income), then you may make a deductible contribution of up to $2K annually to an IRA. However, you are not eligible for one of the self-employed programs like a Keogh, SEP or SIMPLE because you are not self-employed and the foreign entity for which you work may not establish such a plan for you.

Regards..Pixy

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Next Thread
Advertisement