Hello I am a new member and this is my second post in 1 day. I own a rather small trucking company and I have 2 employees. All truck drivers are contract labor, as they own the trucks they drive. I am a S corp. I want to start putting money in a retirement account. I believe I am not eligible for Roth or a deductible traditional IRA due to income. I believe a simple ira is something but I really dont like or understand all the rules with employees. Also I like the idea of index funds would that be a good choice for a taxable account? I have been succesful at making money, just not very well educated at what to do with it after that. Please help. Thanksss
Expert advice needed
- Thread starter kraftdda
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Brat
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Research SEPs (self employed pension). You can set aside as much as 15%, presumably subject to some limitations.
You really want to assure that your independent contractors are truly independent, least they be deemed employees at some later date. Some trucking businesses tip-toe on both sides of the line (so to speak).
You really want to assure that your independent contractors are truly independent, least they be deemed employees at some later date. Some trucking businesses tip-toe on both sides of the line (so to speak).
retire@40
Thinks s/he gets paid by the post
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Brat said:
SEP = Simplified Employee Pension
And it's 25%, not 15%
Brat
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Thanks for the correction. Even better than I recall.
DH had his own one-person pension plan in the 70s. After IRAs were developed his accountant recommended switching to a SEP because the opportunities to save were similar and administration much cheaper. A SEP was simplified our life so the image stuck in my brain.
15% was what the first tier of the old pension plan (although it did go to 25% - couldn't afford that).
DH had his own one-person pension plan in the 70s. After IRAs were developed his accountant recommended switching to a SEP because the opportunities to save were similar and administration much cheaper. A SEP was simplified our life so the image stuck in my brain.
15% was what the first tier of the old pension plan (although it did go to 25% - couldn't afford that).
Welcome to the board, Kraft.
You know your business better than we do and each of these plans has advantages & drawbacks, so while those two are duking it out over their memorized versions of the tax code you can consult the IRS' versions:
SEP: http://www.irs.gov/pub/irs-pdf/p560.pdf
SIMPLE: http://www.irs.gov/pub/irs-pdf/p590.pdf (around page 65)
You know your business better than we do and each of these plans has advantages & drawbacks, so while those two are duking it out over their memorized versions of the tax code you can consult the IRS' versions:
SEP: http://www.irs.gov/pub/irs-pdf/p560.pdf
SIMPLE: http://www.irs.gov/pub/irs-pdf/p590.pdf (around page 65)
