Quote:
Originally Posted by MonarchDon
My CPA just finished my taxes and is telling me I must withdrawl my 2006 roth ira contribution because I have zero net income for 2006. And that I can't contribute any money to my SEP for 2006 either..Would I be better off claiming income so I can keep my contribution...I always put the maximum allowed into these accounts because it's my only form of retirement savings...
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Looks like the CPA is VERY GOOD at eliminating taxes..........
Business owners always have that "fate of choice".............do I show Uncle Sam I had a good year, and pay more taxes, or should I deduct like crazy and stiff Uncle Sam this year?"
I'm not a CPA, but a SEP IRA is a "tax deduction" of sorts you can take that HELPS YOU for retirement. Not sure if it's a "line item" deduction or lowers your tax table calculation, but it's worth a question to the CPA.
You can put away up to $42000 or so in a SEP IRA each year, but that would involve spreading out depreciation on big fixed assets or lowering your expenses that you claim for the business........