Comments on: Trying To Decrease My Taxes, I Have Opened A SEP-IRA http://www.ncnblog.com/2008/02/22/trying-to-decrease-my-taxes-i-have-opened-a-sep-ira/ Debt Reduction Rocks - We Are Living Debt Free! Fri, 10 Feb 2012 00:09:10 +0000 hourly 1 By: Mary http://www.ncnblog.com/2008/02/22/trying-to-decrease-my-taxes-i-have-opened-a-sep-ira/comment-page-1/#comment-137379 Mary Sat, 22 Nov 2008 18:12:21 +0000 http://www.ncnblog.com/2008/02/22/trying-to-decrease-my-taxes-i-have-opened-a-sep-ira/#comment-137379 Please note that the limits stated above are for those under 50. The limit in 2008 for those 50 or older is $51000. There will be minimal paperwork required until you hit $250,000 in assets. Fidelity's SE401K is easy to open up but you will need to get a federal id first. Fidelity will tell you how. Be sure to open your plan by 12/31, I previously had a SEP plan and after researching the newer SE401K a couple years ago, found that the SE401K is a much better plan if you want to sock away the most money during the year. Please note that the limits stated above are for those under 50. The limit in 2008 for those 50 or older is $51000. There will be minimal paperwork required until you hit $250,000 in assets. Fidelity’s SE401K is easy to open up but you will need to get a federal id first. Fidelity will tell you how. Be sure to open your plan by 12/31, I previously had a SEP plan and after researching the newer SE401K a couple years ago, found that the SE401K is a much better plan if you want to sock away the most money during the year.

]]> By: Jodie Nelson http://www.ncnblog.com/2008/02/22/trying-to-decrease-my-taxes-i-have-opened-a-sep-ira/comment-page-1/#comment-91635 Jodie Nelson Mon, 25 Feb 2008 23:43:15 +0000 http://www.ncnblog.com/2008/02/22/trying-to-decrease-my-taxes-i-have-opened-a-sep-ira/#comment-91635 One more item...the SE401K needs to be set up before year-end so you can't use it for 2007. It is a good way to put the money away though. I haven't heard what the fees for these are though...In my experience the traditional 401k is pretty expensive to set up, I don't have any info on the SE401k. Thanks for the blog post from Foobarista, it had good info in it... One more item…the SE401K needs to be set up before year-end so you can’t use it for 2007. It is a good way to put the money away though. I haven’t heard what the fees for these are though…In my experience the traditional 401k is pretty expensive to set up, I don’t have any info on the SE401k. Thanks for the blog post from Foobarista, it had good info in it…

]]> By: Jodie Nelson http://www.ncnblog.com/2008/02/22/trying-to-decrease-my-taxes-i-have-opened-a-sep-ira/comment-page-1/#comment-91634 Jodie Nelson Mon, 25 Feb 2008 23:36:59 +0000 http://www.ncnblog.com/2008/02/22/trying-to-decrease-my-taxes-i-have-opened-a-sep-ira/#comment-91634 Put on your tax form the amount you WILL put into the SEP. I guess you need to know now what amount you will put in...but you are a financial genius, right?! :) Put on your tax form the amount you WILL put into the SEP. I guess you need to know now what amount you will put in…but you are a financial genius, right?! :)

]]> By: Foobarista http://www.ncnblog.com/2008/02/22/trying-to-decrease-my-taxes-i-have-opened-a-sep-ira/comment-page-1/#comment-91479 Foobarista Mon, 25 Feb 2008 02:58:04 +0000 http://www.ncnblog.com/2008/02/22/trying-to-decrease-my-taxes-i-have-opened-a-sep-ira/#comment-91479 If you're a sole proprietor, a SE401K is better than a SEP-IRA; you can put your first $15,500 into a SE401K, but a SEP is a straight percentage up to the maximums. If you are trying to shovel the maximum amount into tax-deferred accounts, a SE401K is better. SE401Ks are _NOT_ employer 401Ks - they are pretty much identical to SE401Ks in terms of paperwork, although there are fewer brokerages that have them. (The main one is Fidelity). My wife has had a SE401K for several years and has put, on average, about 40% of the profits from her business into it each year. Here's my <a href="http://foobarista.blogspot.com/2006/03/sep-ira-versus-self-employed-401k.html">blog post</a> on SE401Ks versus SEP-IRAs. It's a bit old, so the numbers are slightly out of date, but still basically valid. If you’re a sole proprietor, a SE401K is better than a SEP-IRA; you can put your first $15,500 into a SE401K, but a SEP is a straight percentage up to the maximums.

If you are trying to shovel the maximum amount into tax-deferred accounts, a SE401K is better.

SE401Ks are _NOT_ employer 401Ks – they are pretty much identical to SE401Ks in terms of paperwork, although there are fewer brokerages that have them. (The main one is Fidelity).

My wife has had a SE401K for several years and has put, on average, about 40% of the profits from her business into it each year.

Here’s my blog post on SE401Ks versus SEP-IRAs. It’s a bit old, so the numbers are slightly out of date, but still basically valid.

]]> By: Vectorpedia (Rick) http://www.ncnblog.com/2008/02/22/trying-to-decrease-my-taxes-i-have-opened-a-sep-ira/comment-page-1/#comment-91331 Vectorpedia (Rick) Sun, 24 Feb 2008 14:56:28 +0000 http://www.ncnblog.com/2008/02/22/trying-to-decrease-my-taxes-i-have-opened-a-sep-ira/#comment-91331 Thanks for the very informative information on SEP IRA's..........I have heard of them before but didn't know the details until reading this article. Thanks for the very informative information on SEP IRA’s……….I have heard of them before but didn’t know the details until reading this article.

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