From TaxAlmanac, A Free Online Resource for Tax Professionals
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> SEP or SIMPLE
Mshelden (talk|edits) said:
| January 9, 2006
|
| I have a client who had about $300k gain on sale of condo in Alabama. His wife was self-employed, and cleared $8000. Total AGI $400k. She can't pay into an IRA she had previously established in 2002, but can she now start a SEP or SIMPLE plan to pay her profits into? If so, what would be best, IRA or 401k? They want to make an est tax payment by 1/17, and any reduction available would be great.
|
Lois (talk|edits) said:
| 9 January 2006
|
| Any retirement contributions are a function of income taxed for social security. If she only cleared, bottom line, after all deductions $8000 - she doesn't have much choice.
|
DZCPA (talk|edits) said:
| 11 January 2006
|
| Too late to open a SIMPLE. SEP amount would be about $1,600. IRA would be $4000 to $4500 depending on your age. Pay 110% of last years tax liability with balance due 4/15/2006 to avoid penalties.You decision here should have no effect on 1/17 #4 ES pymt.
|
To join in on this discussion, you must first
log in.
