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Greetings, Deertick, and welcome. You asked:

<<Here's the situation. I have a regular job as part of a P.C. and have a pension/profit-sharing plan there.

But I also do some consulting work to the tune of about $20,000. As it is now, that "extra" income was on top of my "real work" income and thus taxed heavily.

Because this is consulting work, would a Keogh plan be right for me? As I understand it, I could at least put 20%=$5000 toward a Keough Retirement account, and thus only tax the remaining $15000.

If the answer is "yes," does anyone know how to set up a Keough plan? Do you need a lawyer, 3 financial advisors, a personal assistant and a few notaries, or is it something any Fool could do?>>


You may use a SEP, Keogh or SIMPLE for your consulting work. For a brief overview of each, see my Foolish Retirement Plan Primer at http://www.fool.com/retirement. You should also go to the IRS website at www.irs.gov and download IRS Publication 560, Retirement Plans for Small Business (SEP, Keogh and SIMPLE Plans). There are any number of providers who can help you establish one of these beasties.

Regards..Pixy
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