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Subject:  Re: what is available? Date:  10/8/2007  7:49 PM
Author:  aj485 Number:  59510 of 90137

This year and next I will make more money, and would like to set it aside for retirement. I have two employees, starting next year they will have 3 years with me. I do not wish to contribute to their retirement. Can I set up a SEP or SIMPLE for this year only? I assume contributing to employees is required, right?

Assuming that your employees each earned at least $5000 in either of the last two years and that they are reasonably expected to earn (or already have earned) $5000 this year, it is unlikely that you can start a SEP or a SIMPLE without contributing to their retirement. Here is a link on the IRS website about retirement plans for small businesses:,,id=108975,00.html

Are there any other vehicles? I have a ROTH-IRA, but assume I can only contribute $5,000 each year (I'm 54). I have a small amount in the RothIRA, as I didn't get started saving for retirement until recently. I'd like to "Catch up."

If you aren't willing to contribute to your employees' retirement, with the IRA, you have pretty much used up your tax-advantaged vehicles.

I have about $50K this year, and maybe $50K next year that I'd like to save for retirement. What is the best way?

You can invest using taxable accounts. The fact that you want it to be retirement savings doesn't require the account to say "401(k)", "403(b)", "457", "SEP", or "IRA" (Simple or otherwise). Saving for your retirement is also done outside of tax-advantaged vehicles.

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