How many of you use a SIMPLE IRA as opposed to a SEP IRA. As a self employed individual with NO employees, it seems you'd be able to contribute more to the SIMPLE ( ?$11,000 per year) than to the SEP IRA ; assuming you don't have a high AGI. I believe as long as you make 11k AGI you can contribute and deduct the ENTIRE 11k with the SIMPLE, whereas with the SEP you'd only be allowed a fraction of this amount (? 40% up to $45k)
Is my understanding correct?
Is my understanding correct?