Discussion:IRA for real estate professionals
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Discussion Forum Index --> Tax Questions --> IRA for real estate professionals
| 10 April 2006 | |
| Please advise how a real estate professional can establish an IRA without incorporating his business (and being as an employee of his or her own corporation). | |
TTtzulungTT (talk|edits) said: | 27 April 2006 |
| You can set up a SEP IRA (20% of net income) and also set up a traditional IRA ($4000 at the moment, $4500 if over 50)...if you are in California and need help setting up those accounts...contact me at nickchea@yahoo.com | |
| 27 April 2006 | |
| Or an individual 401k. By comparison 100K of Sch C income will yield $18,616 max SEP contribution vs $32,616 max Ind401k for 2005. Amounts will be slightly different for 2006. One significant variable, however, is if you are looking at a deduction for 2005, the SEP does not need to be set up and/or funded until the due date of the return (10/15/06 if an extension was filed) whereas 401k must be set up no later than 12/31 (but must be funded by due date of return). So SEP or 401k will work for 2006, but at this date only a SEP will work for 2005. | |
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