Skip to main content
No. of Recommendations: 0
Scott sez:

Wow! Fun stuff! Assuming the numbers were run right, I'm surprised at how competitive the SIMPLE is with the SEP - it looks like about $55k of earnings is where the SEP starts to pull ahead, where I would have thought it would be around $40k. That $6k base is powerful. I'm also starting to see the point about not letting your wife (Jen, in this case :-) do pro bono work for your sole proprietorship.

Good analysis. I haven't run the numbers myself, but that's the approach to take. Keep one thing in mind about the SIMPLE, though. Unlike the SEP where you can skip payments for years on end, you don't have that freedom in the SIMPLE. As the employER, you will have to contribute in unprofitable years as well whether you use a nonelective contribution or match. Plus there's a tad more paperwork involved. Despite that, it can still make for a good approach to tax deferral in many cases.

Regards….Pixy



Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.