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Message
Need advice on sep ira
Posted on 10/20/20 at 5:01 pm
Posted on 10/20/20 at 5:01 pm
Small biz owner here. My accountant says I need to invest the max amount allowed (55k) into a sep IRA as a tax write off. Can anyone give advice how to best do this and should I invest now or after the election? Thanks for the help.
5
Posted on 10/20/20 at 5:08 pm to RTR1979
Set it up with Fidelity or Schwab or any discount broker.
Buy low fee ETFs or mutual funds.
Leave it alone.
Retire.
Withdraw money.
Buy low fee ETFs or mutual funds.
Leave it alone.
Retire.
Withdraw money.
Posted on 10/20/20 at 5:20 pm to RTR1979
Do you have any employees?
Posted on 10/20/20 at 5:21 pm to LSUSUPERSTAR
No employees just labor I sub out.
Posted on 10/20/20 at 5:26 pm to RTR1979
we use vanguard for our SEP
set up the account, transfer the 55K to the account...its that easy. you can leave it in money market, invest in mutual funds, etc (that part is entirely up to you)
set up the account, transfer the 55K to the account...its that easy. you can leave it in money market, invest in mutual funds, etc (that part is entirely up to you)
Posted on 10/20/20 at 5:28 pm to RTR1979
Okay, then do what the above poster said and open one up at a big place like Fidelity, Vanguard, etc.
I would put some in now and then after the election to hedge yourself.
I would put some in now and then after the election to hedge yourself.
Posted on 10/20/20 at 6:22 pm to makersmark1
quote:
Set it up with Fidelity or Schwab or any discount broker.
Buy low fee ETFs or mutual funds.
Leave it alone.
Retire.
Withdraw money.
Solid advice.
I’m assuming you have the income for this to not only make sense this year, but also leave you enough cash to diversify. That’s a ton in a retirement account
Posted on 10/20/20 at 7:10 pm to OceanMan
I run a small construction business and I had to use bonus depreciation last year on my equipment to get out from under taxes. That left me with less to write off this year so I'm looking for ways to shelter my money without buying too much extra equipment. I've added a few new write offs and I'm hoping this move will get me in the clear.
Posted on 10/20/20 at 8:23 pm to RTR1979
don’t buy shite you don’t need.
if you are doing cost to complete accounting just max your SEP and accelerate (prepay) next years expenses
you can also extend your jobs past a fiscal year by doing an internal change order (if same customer) instead of starting a new job number. This is “kick the can” accounting but you never know, corporate taxes might go lower
if you are doing cost to complete accounting just max your SEP and accelerate (prepay) next years expenses
you can also extend your jobs past a fiscal year by doing an internal change order (if same customer) instead of starting a new job number. This is “kick the can” accounting but you never know, corporate taxes might go lower
This post was edited on 10/20/20 at 8:26 pm
Posted on 10/21/20 at 1:05 am to cgrand
I have been putting the max allowed per year in my SEP for the last 8 years. This is what my CPA has recommended. Works well for me.
Posted on 10/21/20 at 10:27 am to RTR1979
Just remember that the 25% SEP contribution must come from wages you pay yourself not pass through income.
Posted on 10/21/20 at 10:40 am to 1609tiger
quote:
Just remember that the 25% SEP contribution must come from wages you pay yourself not pass through income.
what i do is gross-up my W2 wages to the maximum allowed to get the 55K SEP
Posted on 10/21/20 at 11:01 am to cgrand
I’ve been with Schwab since the 80’s and have been happy with them but for IRA’s I like Fidelity better.My IRA is with Fidelity and when I make a withdrawal they send a check to IRA for withholding.My wife is with Schwab and they don’t do that,we have to fill out estimated tax form and send in check ourselves.
I don’t know what Vanguard does,never had an account with them.
I don’t know what Vanguard does,never had an account with them.
Posted on 10/21/20 at 11:02 am to RTR1979
get a solo401k. it is better.
LINK
LINK
quote:
n years when your income may be lower than usual, the “percentage of compensation” method used for calculating SEP IRA contributions will result in a lower contribution amount for you even if you have the cash to make a larger contribution. In addition, the SEP IRA doesn't allow for catch-up contributions. With a solo 401(k), as long as your compensation exceeds the $19,500/$26,000 annual limits, you can contribute the full amount. So if you're really looking to save for your retirement big-time, a solo 401(k) might be your best bet.
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