Quick Tax Question -- SEP Without Deduction Benefit
Last year was the last year that I had earned income, and I can contribute about $1500 to my SEP-IRA for 2006. However, my tax will be so low, that the contribution will have no effect on my tax.
So, the question is: do I contribute anyway? I'd get the benefit of tax-free compounding. I have enough dough that I can make it to 59.5 without withdrawals. I don't care about RMD's. My tax rate will be pretty low for a while.
I'd like to decide before tomorrow morning.