Self-employed techs

[Mark Potter]

brittanykirk272 at comcast.net wrote:
    If you invest in an IRA, is the amount you invested exempt from income tax AND self-employment tax?
  Brittney -
   
  You should definitely check with a tax specialist, but I believe he will tell you that monies placed in a Traditional IRA are exempt from both (they are subtracted from your net profit before any taxes are figured), but monies placed in a Roth IRA are not.  The Roth certainly has some major advantages, though.  When confirming this with an advisor, be sure to check on what the current maximum annual contribution is that can be deducted for tax purposes.
   
  Mark Potter

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