Posted by Art_PA on 12/14/08 7:54am
Msg #271907

Tax Planning

If you have not done so already, you can set up a 401K plan which allows you to shelter much more than a traditional IRA. You can also have a SEP IRA which allows you to shelter much more than a traditional IRA. You can have both plans. Of course you need to have the funds to contribute, and if you do, you can pay much less in tax for 2008.

Reply by MW/VA on 12/14/08 12:14pm
Msg #271918

And you have until April 15th to do that for the previous tax year, right?
I know that is true of IRA contributions. Is it also true for 401K's?

Reply by Art_PA on 12/14/08 1:49pm
Msg #271921

I believe that the 401K has to be established in 2008 so you would at least partially fund it in 2008.

One should check with a mutual fund company, bank, or financial professional with respect to the SEP IRA. I suggest that it would be smart to check with 3 providers because you can get incorrect information or may be misunderstood.

Reply by MikeC/NY on 12/14/08 5:22pm
Msg #271926

You can't set up a 401K if you're self-employed. Where are you getting your information?

Reply by Doris_CO on 12/14/08 7:54pm
Msg #271931

Mike, here's the answer to your question. I learned something today.

http://www.sepira.com/

Reply by MikeC/NY on 12/15/08 4:26pm
Msg #271979

A SEP IRA is not the same thing as a 401K.

Reply by PAW on 12/15/08 4:34pm
Msg #271981

401-k for the self employed

The Individual 401k is a self employed retirement plan that is sometimes referred to as an "Individual(k)", "Solo 401k", "Single(k)" and "Self Employed 401k".

http://www.individual401k.com/individual_401k/

Available for self employed individuals

Reply by Doris_CO on 12/15/08 5:55pm
Msg #271991

Re: 401-k for the self employed

This link gives the difference between the Individual 401K and the SEP IRA.
What great information. Thanks Art_PA for bringing this to our attention.


http://www.sepira.com/sep_ira/sep-or-401k.htm