IRA retirement funds...

B

blando3

Well-known member
Hey all you independent contractors, I'm looking into starting up a SEP IRA. I've heard about a type of IRA which allows you to contribute up to 45% of your income, which is then tax free. Has anyone heard of this?

Any other suggestions on where to look for good IRA options?
Thanks.
 
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First off:
Don't listen to anything I say, except for this: talk to a CPA about this.

I don't really know much... but I was looking at setting up a similiar thing in 2008, but with a 401K.
I'm not aware of any IRA that allows for a 45% salary contribution.

The most I know of is with the self-employment 401Ks, which I believe can allow up to 35% in certain instances - though 25% of that is from 'profit sharing' and not directly from salary. Of course, that's tax deferred - and you'll be paying taxes on it when you take it out. But there is really no way around paying taxes - you either pay them now or later.

Here's the wiki page on 401K and self employment
 
Yeah, I've read about SEP IRA's for independent contractors. A guy who wrote a book called The Automatic Millionaire said if you can, you should RUN, not walk to set one up. Of course I haven't done so yet.
 
I have a SEP. They are good for indie contractors. But you really need to talk to an accountant. Already, your numbers are wrong.
 
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