Optimal retirement accounts for self-employed?

dancalio · 11-15-2004, 06:54 PM

I'm currently running a sole-proprietership and I will likely turn it into an S-Corporation in the future.

Could somebody help me figure out the optimal tax-advantaged setup for myself?

I've got the roth ira setup. And then I think I can set up a sep-ira and contribute up to 14K a year (no more than 25% of salary).

I also heard about a 401 K for my situation to be used either instead of the sepira or in addition to the sep ira.

I've been wondering about this for some time but I need to make things more concrete soon.

Thanks for any help,
Daniel

brewer12345 · 11-16-2004, 05:44 AM

If you are the sole proprietor, go with a solo 401k instead of a SEP. You can defer the most dough pre-tax with a solo 401k. I haven't found a lower cost provider than Fidelity.

11-15-2004, 06:54 PM	#1
dancalio Confused about dryer sheets Join Date: Sep 2004 Posts: 5	Optimal retirement accounts for self-employed? I'm currently running a sole-proprietership and I will likely turn it into an S-Corporation in the future. Could somebody help me figure out the optimal tax-advantaged setup for myself? I've got the roth ira setup. And then I think I can set up a sep-ira and contribute up to 14K a year (no more than 25% of salary). I also heard about a 401 K for my situation to be used either instead of the sepira or in addition to the sep ira. I've been wondering about this for some time but I need to make things more concrete soon. Thanks for any help, Daniel

11-16-2004, 05:44 AM	#2
brewer12345 Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Mar 2003 Posts: 9,255	Re: Optimal retirement accounts for self-employed? If you are the sole proprietor, go with a solo 401k instead of a SEP. You can defer the most dough pre-tax with a solo 401k. I haven't found a lower cost provider than Fidelity. __________________ “When you realize that you are one of the rare few who observe moral principles in their relationships with others, there is a temptation to sink into amorality, not out of conviction or pleasure but simply to avoid further pain, because there is no greater suffering than being an angel in hell, whereas a devil feels at home wherever he goes.” – Martin Page, How I Became Stupid

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