Self-employed techs

[Pam Bero]

You might also want to ask about a SEP IRA..(Simplified Employee Pension
Plan) made for the self-employed.  

 

Pam Bero

 

From: pianotech-bounces at ptg.org [mailto:pianotech-bounces at ptg.org] On Behalf
Of Mark Potter
Sent: Friday, October 05, 2007 5:08 AM
To: Pianotech List
Subject: Re: Self-employed techs

 

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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