SEP IRA

Archive for the ‘SEP IRA’ Category

Question: How am I doing as far as financially and for retirement?

I am 51 years old Internist making about $160,000 a year in a very stable group practice.

I have about $400,000 in SEP IRA and regular IRA when I used to be self employed. Most of it are in Vanguard Target retirement fund 2025.

My home is completely payed off and worth about $280,000.

I contribute max to my current 401K, and have about $300,000 in cash.

I have no kids and divorced. No alimony. I have zero debts.

How am I compared to other 51 year olds?

Will I be OK for retirement when I’m 65? I’m planning to keep working part time after 65 as well.

Thanks for any input. Current economic condition has me a little bit scared.

Answer: i think you are fine, your house is paid off, you have savings or cash that you can get too if you need it, but do you seriously see yourself going through the 300k in a year? cause i really wouldn’t think so on top of that you still have 14 years to retirement because you are making fairly good money and your house is paid off that’s a bill that the money can be earmarked for your savings..i think you are doing great and hope to be near that mark in a few years….the first answerer obviously has quite a higher standard of living…but as long as you aren’t planing on being her neighbor…carry on….

Dita conferenza Jamboree (single)

Ira Glass acceptance speech for the Edward R. Murrow award

Question: Save income in SEP IRA instead of sending full estimated taxes?

I am self-employed and have a question regarding estimated taxes. This year, my estimated quarterly tax payments are supposed to be:

Federal: $9730
State: $1730 (California)

Total: $45,840 just my part

I filed jointly in 2007 with my wife (who is employee at a large company) and our total taxable income was $166,471.00. I made around 100k and she made around 97k

Fed Marginal Tax Rate: 28%
State Marginal Tax Rate: 9.3%

My question is this. I want to save some of this money in a SEP IRA instead of just sending it to estimated taxes. How can I figure out how much (roughly) to send to the IRS quarterly and how much to put away in the SEP IRA? Will I be penalized for not sending the full amount quarterly?

Thanks

Answer: your accountant can do some tax planning for you. with such an income i would suggest to use the help of professionals (CPAs). they can save a lot of money even though they charge a lot i would consider that money wisely spent.