SEP IRA

Archive for the ‘SEP IRA’ Category

Question: which retirement account best suits me?

I am a 21 year old day trader trading my own account. At the end of the month I usually withdraw my profits and send them to a savings account. I opened a Roth IRA and plan on contributing the max $5,000 per year. I will like to contribute more to my retirement but I am not sure what other account I can open. I do not own a business or work for anyone. I’ve been told to look into a SEP, Keogh, and Solo 401k but don’t know which account is best suited for me. Which is the best type of retirement account that I should open if I am working for myself and not under any business?

Also, I am currently making less than $100k but if I pass that I wont qualify for the Roth anymore so what do I do then?

thx!

Answer: The way to expand your retirement account as well as create more deductions for yourself is to form an LLC (limited liability corporation). That way you could have a solo 401k and put in and deduct over $40k of profits/earnings. You can deduct all kinds of business and health insurance expenses as well.

LLC also protects you in case you had a bad trade and lost more than you had in the account, such as shorting stock you don’t hold.

Can qualified monies be rolled over into a properly structured Tax Free Income Retirement Plan

Question: Will employer contributions to a SEP IRA be counted in the same category as traditional IRA contributions?

Is it possible to make contributions to a traditional or Roth IRA while your employer makes yearly contributions to a SEP IRA? I also recently married and my husband already has a traditional IRA just under his name. Would his contributions to that account factor into this equation?

Answer: You can still make contributions to your own individual traditional or Roth IRA. The SEP IRA is a totally separate work-related account. However you cannot make tax-deductible contributions to a traditional IRA, since you have a SEP. Also, you and your husband can make contributions to your own accounts, IRAs are individual accounts, not household.

Financial Services Upland CA: Investments, Mutual Funds, 401k, IRA, Annuity, Life Insurance

Question: Can I gift my SEP-IRA to my grown kids even though I’m 46 to avoid penalties? How much? ?

I’d like to actually convert it to a real estate investment on their behalf…..
Can you give me some advice?
One is 25, one is 22 and one is 17…she is in her last year of high school.

Answer: If you want to distribute your IRA to your children during your lifetime, you can avoid the penalty if you take substantially equal periodic payments over a minimum of five years, depending on your life expectancy. If you want to do this, consult with your financial institution and tax advisor to set this up. You will pay the income tax, then you can give any or all of the proceeds away.

It is also possible to invest in real estate inside of an IRA.

But you cannot transfer ownership to your children and avoid tax.

Self Directed IRA: The Basics (Part 1) James Smith Real Estate