Solo Retirement Plans: The SEP-IRA vs. the Solo-401(k)

Solo Retirement Plans: The SEP-IRA vs. the Solo-401(k)

As a solo entrepreneur (or “solopreneur” as they say nowadays), do you feel like you’re out in the cold watching your employee friends partying inside, celebrating their juicy tax-advantaged retirement accounts? Okay, that’s a weird metaphor and it’s kind of creepy to stand out in the cold and watch people, but you get the picture. How can you, on your own, enjoy similar tax benefits as people who work for large firms and have a whole department to handle their 401(k) plans? Though you have several different retirement options, we’re going to compare two of your best options. First we’ll…
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Why Choose a Roth IRA?

Why Choose a Roth IRA?

If you’ve been in touch with any sort of financial advisor, personal accountant, or tax preparer over the last several years, you just might be tired of being asked: “Have you made the maximum contribution to your IRA this year?” We ask it a lot, but there’s a very good reason for this: retirement accounts can save you loads of money on taxes — as long as you follow the rules. Pulling money out of an IRA (Individual Retirement Account) early can incur a painful 10% penalty, so make sure you only contribute what you can afford. This article is…
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Is The “Backdoor Roth” Worth It?

Is The “Backdoor Roth” Worth It?

Is your income too high for a Roth IRA, but you want to enjoy the unique benefits of this special kind of retirement account? (Note: The income limit for a Roth IRA for the tax year 2021 is $208,000 for Married Filing Jointly or $140,000 for Single filers.) There is a way to get the benefits of a Roth IRA even if you are a high-income earner. It does involve some tricky administrative work, though, so it is important to do it right. https://youtu.be/v_XAjz31lJI How Does a Roth IRA Differ From a Traditional IRA? The most significant difference between a…
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