SEP IRA

Posts Tagged ‘retirement’

Chicks On Flicks Episode no. 43 Reviewed: Up, Kung Fu Panda, Wall E, Persepolis

Question: What happens to the CPA who does your taxes wrong?

I had my sister in laws CPA do my taxes for 2004, 2005 and 2006. Well in 2007 I got a notice from the IRS saying I owed back taxes for all those years. I had a certified CPA look at thoes back taxes. He found that the old CPA had added my SEP-IRA from work as income i had borrowed. I never borrowed from my SEP-IRA in those back years. I’ve tried contacting the old CPA, which she took one of my calls and never called me back. She changed her number. What can I do?

Answer: My tax preparer’s policy is that if he makes a mistake, HE pays the penalty and interest. If she is really a licensed CPA report her to the licensing agency. You could take her to small claims court to get the money. Also, it is clear on my tax returns who prepared them. Is her name on them anywhere? Did you check the return before you signed it? Good luck..

planning_no_taxes_01.mov

Question: Can a person make maximum contributions to a SIMPLE IRA and a 401k in the same year?

The person works for two employers, one has a 401k, the other has a SIMPLE IRA.

Answer: There is a maximum you can contribute to your 401(k) and a maximum you can contribute to an IRA. The two have separate limits and one does not affect the other.

Also, if you are contributing to a 401(k) it is generally a good idea to contribute to a Roth IRA as opposed to a traditional IRA unless you need the immediate tax write off.

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