Originally Posted by ferco
Am I correct in that the Solo 401k requires more paper work and "costs" than the SIMPLE or SEP IRA's. Again, my original post was if you're only grossing for example 11k as solo self-employed would not the SIMPLE make more sense than the SEP?
My thinking is I could earn this money(11k AGI) per calender year as a self employed individual and essentially not have to pay any taxes on it. This in a calender year would allow me to pay my business expenses plus contribute to the retirement plan all tax free.
I missed part your original post, I was sleepy buzzed last night, 25 cent wing and taco night...
If you make $11k, you can put $10k into a SEP as tax deffered payroll deduction in 2006, not sure if it is going up in 2007. Company would/Could match up to 3% of your $11k or $330.00. You then have only $670.00 of income to pay your expenses.
Sounds easy to not make enough to pay taxes.