Skip to main content
No. of Recommendations: 1
Well you have an additional problem with taxes that normal lazy, NOn Self employee, people don't have.
Taxes, specifically the Self employment tax.
You can't reduce your Self employment tax via an Retirement account unless you incorporate. Which unless you are revenue from SE of over 150K and revenue over 100K a year its not cost effective.
So given that IMO here is the optimal solution

Set up SEP IRA you can invest up to 15% of your new revenue, (netincome from Schedule C.). ###Note### because of the Way Self Employment tax works you really only get to invest 13.5something%.
But that will reduce your taxable income.
If you enough cash after that then you might want to go with Roth.
YOu have to look for tax reduction first it you are SE, because of SE Tax and cash flow.
Print the post  


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.