If you are Self-Employed, the IRS has a deal for you; High Contribution IRA Accounts! Unlike the typical $5,500 or $6,500 annual limit allowed for regular IRA’s, a SEP IRA allows annual contribution limits of $52,00.
Or, have you considered starting a 401(k) plan for your business? You may want to consider a SEP or Simple IRA instead. These IRA plans are much easier and lower in cost to maintain. Both SEP and the Simple IRA work best for the individual with NO employees. If you ever add an employee in the future, making the contributions is a snap. And adding an employee to a SEP or Simple IRA requires no additional IRS filing.
The key question is: How large do you expect your business to grow? If this is a side business that you expect will earn $48,000 or less per year, the Simple will allow the larger contribution. If you expect the business to earn more than $48,000, you should consider a SEP IRA which allows larger tax deferred contribution.
You can max out the contributions! It will be about $53,000 for you and $53,000 for your spouse. Total about $106,000 and it is all deductible from this year’s earnings.
For more information on Self Directed IRAs call toll free 888-795-7950
IRA Club, 79 West Monroe Suite 1208, Chicago, IL 60603-4936
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