Posted by Art_PA on 12/25/10 11:58am
Msg #366025

Pay Yourself - 401K

To those of you who have $$ left and who have not done so, you still have time to set up a solo 401k & profit sharing plan. This allows you to shelter substantial income (over 15%), and even more if you are over 50. Use of this plan will reduce your taxes. You pay yourself instead of sending the $$ to Washington. Depending upon your income you may also qualify for an IRA or Roth IRA.

A 401k must be established this year, even if you will fund it next year when you do your taxes and determine how much you can contribute.

An IRA for 2010 can be set up in 2011.

Of course, if you believe taxes are too low, you can always send in more.

Reply by C. Rivera Chicago Notary Services on 12/26/10 11:58am
Msg #366048

most excellent advice Art! n/m

Reply by Jessica Ward on 12/26/10 10:09pm
Msg #366055

Never heard of a solo 401k--is this new?

I'll likely do a Roth (I'd rather pay taxes on it now while it's little money) but I may try to do a 401K in addition if such a solo 401k product can be found. How can I learn more? I've never heard of such a product.

Reply by Linda_H/FL on 12/27/10 8:09am
Msg #366073

Google it - lots of links for info n/m