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All-In [34486]
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Retirement savings for self-employed
Jun 28, 2022, 9:09 AM
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Do you guys do a 401k for yourself? I have an IRA but need something else to limit tax exposure. Paying $2k+ a year for plan administration for one person (Fidelity Small Biz 401k) seems not to be an effective way to lock-in gains. Is there something else I need to be looking at?
I trust you guys more than a CPA.
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Oculus Spirit [85334]
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I wouldn't put it in a bank
Jun 28, 2022, 9:10 AM
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unless you want to lose it all.
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CU Guru [1059]
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Re: Retirement savings for self-employed
Jun 28, 2022, 9:13 AM
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Best and most cost effective is either a SEP-IRA or SIMPLE IRA. You can also look at a One-Person (Solo) 401k but the admin costs will be higher than a SEP or SIMPLE.
It really depends how how much money you are looking to put into the plan each year as the employee/employer. Each plan has varying contribution limits so I would advise that you do consult with a CPA.
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All-In [34486]
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Helpful post is helpful.***
Jun 28, 2022, 9:37 AM
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Oculus Spirit [79249]
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You really gonna listen to this lurker?***
Jun 28, 2022, 9:38 AM
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Oculus Spirit [81897]
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Oculus Spirit [79249]
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Here's the best advice I got for you.
Jun 28, 2022, 9:38 AM
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Don't ask a CPA, you're talking about investing, not ####### accounting. Apples and oranges. CPA's are good for picking boogers and getting punched in their nerd faces.
Now then. Tickle_it graduated from THE Clemson University with a degree in Financial Management with an emphasis in...shid I forgot. Whatever. Listen up. If you want to just invest now and take the tax hit, then do a roth IRA and don't look back. Hell it might be to your advantage while you're starting up and your income is smaller (and so will your taxes). Or you can just put it in the traditional IRA, and then when it comes around to tax time, you can claim that money back. That's what you do with a 529 (although it's state taxes yes, but the same principle).
You may be asking yourself, why TF would I take this advice? Good question. I don't know, I work in sales now and haven't done actual finance work in I don't know how long. But if there's one thing I do know, it's that I luv tiddies.
Your taxes this year are gonna be fun.
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Lot o points [163012]
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CPA is for the tax benefits/decisions on plan types
Jun 28, 2022, 9:42 AM
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and things like Roth or not.
Unless she/he is a CFP, no investment advice should be given or taken.
FM grad también. But I had more Econ courses than Finance back in the day. And way more Acct.
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Oculus Spirit [79249]
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Yeah but why consult a CPA? You got 2 options
Jun 28, 2022, 9:44 AM
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pay taxes now, or pay them when you withdraw. Not exactly rocket surgery.
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Lot o points [163012]
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Not everyone has a
Jun 28, 2022, 9:50 AM
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FM degree.
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Hall of Famer [20573]
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All-In [29860]
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Re: Retirement savings for self-employed
Jun 28, 2022, 9:48 AM
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I got my retirement plan all worked out...
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Lot o points [181005]
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Baseball cards.***
Jun 28, 2022, 9:49 AM
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Oculus Spirit [75719]
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If you'd like a tax shelter, your business could
Jun 28, 2022, 10:16 AM
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buy me a truck. I'll figure out some way to use it for your business a little bit every day.
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Heisman Winner [135609]
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Spend it all now.
Jun 28, 2022, 12:17 PM
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The impending apocalypse will prove this strategy valid.
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All-In [32653]
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We do SEPs - was $50 to $75 to set up. And we put the
Jun 28, 2022, 12:29 PM
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funds in minimally managed index-type funds.
Has been great - except for when the market crashes into the fiery pits of hot places & stuff.
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