Subscribing to my site guarantees you don't miss any new content. Choose either E-Mail Feed or RSS Feed. Thanks for visiting!

A few weeks ago I received an email from someone I affectionately call Blogger X.

In that email, Blogger X asked me for some ideas on how to reduce his taxable income. I decided to write a post addressing some of his concerns and in that post I listed 3 different retirement plans that allow for self employed individuals to shelter gobs of income:

• The Pros and Cons of a SEP IRA
• The Pros and Cons of a SIMPLE IRA
• The Benefits of Owning a Solo 401(k)

Now, the reason I bring all this up is because earlier this week I received a very thorough email (below) from a conscientious reader, and in that email (as you will see) he references the above articles. So, I just want anyone coming across this post to be up to speed;) My answers to his questions are highlighted in blue.

Without further ado…

Continue Reading “A Reader Question Regarding Self Employment Retirement Plans”

Last week I wrote a post on different ways you can reduce your reported taxable income. Besides offering some tax advice to one of my blogging contemporaries - Blogger X , I listed a few retirement plans (for those with self-employment income) that allow you to sock away large sums of pre-tax money each year.

I’d like to take a closer look at 3 of the plans I mentioned in that post. For the sake of keeping it simple, I’m going to breakdown each plan into an individual blog post. Let’s begin with the SEP IRA, the plan of choice for last week’s subject - Blogger X.

SEP (Simplified Employee Pension) Plan Suitability

A SEP IRA is the way to go if you’re a small employer (typically less than 10 employees and many times just one employee, YOU!) looking for a simple retirement plan that’s easy to install and administer. Most financial institutions will have the plan documents on file and it’s as easy as opening up any investment or bank account.

Continue Reading “Pros and Cons of a SEP IRA”