I’ve been contributing to my Solo 401(k), but with new tax laws and the rising cost of living, I’m wondering if there are additional moves I should make to optimize my taxes and retirement savings.
Excellent thank you so much. I know this may sound like a little thing but it is huge for me...In that I loved how you had the words displayed on the screen regarding what you were saying. It helped me so much to process what you were saying. Thank you again
Great video, Question. Can you rollover this Set-Ira into a Roth Ira or Selfdirected Roth Ira? is so, how often can you do it?. Here is why my question, I think is better to be moving money every year to a Roth Ira because it will grow for longer time and tax free instead of living it in this Set-Ira and differ more volume of taxes. Thanks
My wife is an independent contractor. We are married filing jointly. I understand she can contribute as much as 25% of her net earnings to a SEP-IRA in her name. Is this my wife's net earnings only or is it both our earnings combined because we are filing jointly? I couldn't find that on any of the info docs.
Can I get the tax benefits for previous year if I invest after the new year? I was paid out for 2023, haven't filed taxes yet and would like to set up a SEP through my business. Can this count towards my 2023 wages?
Could you kindly explain: If you eventually have to pay taxes on SEP (when you retire), how are you saving/profiting from contribution? Are you not just delaying the taxes you'll have to pay anyway? Thx.
Yes. As with all deferred income programs (401k, traditional IRA, etc), all you are doing is delaying taxes. If your tax rate is the same when you earn the money and when you withdraw it in retirement, you didn’t save anything. The goal would be to pay the taxes when your marginal tax rate is lower. If you have a modest income but are saving from an early age and your investments will grow to a lot by retirement, you might be better off paying the taxes now (via a Roth IRA). If you have a large income and are saving little, a 401k or traditional IRA or SEP IRA is better. It’s also possible that SEP or a Solo 401k could save you from paying a small amount of FICA/social security taxes, which is quite a lot of money. Especially for self employed people.
I understand that you contribute the same amount per employee or % of their income. Is it true, there is no minimum on this though and doesn't' directly affect how much the employer invests in the SEP IRA?
at 2:36 you say, you can contribute up to 20%. However from what I’m reading from other sources you can contribute up to 25% or $58,000 ($61,000 for 2022 ever is lower). can you clarify? Thanks for posting!
If I sell a stock in my SEP, is that a taxable event? For example, I sell stock “A” and make “X” profit, then reinvest in another stock within the SEP?
Thanks for a great video. I have a question. I am a freelance musician (small business account/EIN) with extra $ in my bank savings. I’m trying to put the $ into more investment strategies. I currently have a Roth, and it is maxed out. Should I have a SEP as well ? To dump extra cash in… My income is less than $100k/ year .The more than 100k in savings is money that has just built up over my life of saving. Hope to hear back.
LYFE, I am still not understanding what happens with the money sitting in the account, is it earning interest or what? ~~ I am an independent contractor, so how often can I contribute to my account? this is August 2021 so do I have until April 2022 to contribute? and where does one start? the IRS 5305-sep? _ do I need a CPA to do this?
@@LYFEAccounting From the IRS website: "You can both receive employer contributions to a SEP-IRA and make regular, annual contributions to a traditional or Roth IRA. Employer contributions made under a SEP plan do not affect the amount you can contribute to an IRA on your own behalf." Dated: Mar 11, 2021
I've come to realize that the key to amassing wealth lies in making sound investments. I purchased my first home at the age of 21 for $87,000 and sold it for $197,000. My second home, acquired for $170,000, was later sold for $320,000, and my third property, purchased at $300,000, fetched $589,000, with buyers covering all closing costs and expenses. Not reaching a million before retirement feels like an unfulfilled goal.
I initially started my investment journey with the guidance of a financial advisor named *Jenny Pamogas Canaya.* Her transparent approach granted me full control of my investments, and her fees are reasonable, considering my return on investment. Nonetheless, it's crucial to conduct thorough research before engaging with any financial advisor.
Yeah. Look up Solo 401k. If you don’t know about it’s worth finding out about. You can put in more than that per year, traditional or ROTH, & you can borrow $50,000 or 50% (which ever is less) of that with no penalty. You’d have to pay it back (to yourself) tho.
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Watch next: The BEST Self Employed Retirement Plans to Reduce Your Taxes ruclips.net/video/4PHRLrGIm6k/видео.html
That's what's up! I needed clarification on the 20% being on net income.. thank you again great clear video
Very helpful, as I'm a solo therapist in private practice. Thank you!
Thank you so much for explaining this so simply.
I have a SEP Roth , Your saying 10k is the maximum to contribute?
I’ve been contributing to my Solo 401(k), but with new tax laws and the rising cost of living, I’m wondering if there are additional moves I should make to optimize my taxes and retirement savings.
Excellent thank you so much. I know this may sound like a little thing but it is huge for me...In that I loved how you had the words displayed on the screen regarding what you were saying. It helped me so much to process what you were saying. Thank you again
Glad it was helpful! Thanks for watching.
Very helpful, Thank you
Great video, Question.
Can you rollover this Set-Ira into a Roth Ira or Selfdirected Roth Ira? is so, how often can you do it?. Here is why my question, I think is better to be moving money every year to a Roth Ira because it will grow for longer time and tax free instead of living it in this Set-Ira and differ more volume of taxes. Thanks
I would love to know the same thing.
Did you find out any more info on this?
How would this work with an s corp?. would I contribute to sep Ira directly from llc as employer?
So I couldn’t do sep Ira if I hired my kids in my business to be able to start their custodial Roth?
Hello. I am a slow prop. Is the 20% based on gross or adjusted gross income?
My question is if you have dividend income that goes to your investment account aren’t you taxed? I cannot do dividend drips with my broker
My wife is an independent contractor. We are married filing jointly. I understand she can contribute as much as 25% of her net earnings to a SEP-IRA in her name. Is this my wife's net earnings only or is it both our earnings combined because we are filing jointly? I couldn't find that on any of the info docs.
Good question. We are in the same situation looking for answers
Contact a tax professional
If you’re married, how would they know where the contribution is coming from if you have a joint account…
Nice ☝🏾
What if a person is a full owner of a S Corp who receives W-2 income and K-1 income?
I have the same question
Question. If I made 5k this year as a individual free lancer. How much can I contribute this year?
maybe look into a traditional ira
Can I get the tax benefits for previous year if I invest after the new year? I was paid out for 2023, haven't filed taxes yet and would like to set up a SEP through my business. Can this count towards my 2023 wages?
You can still contribute to 2023 year right now
Just make sure you add it to your 2023 contributions
Maybe I missed it, but it would be helpful to explain this is tax deferred: will need to pay tax on it eventually. A CON in my opinion over Roth IRA.
Could you kindly explain: If you eventually have to pay taxes on SEP (when you retire), how are you saving/profiting from contribution? Are you not just delaying the taxes you'll have to pay anyway? Thx.
Yes. As with all deferred income programs (401k, traditional IRA, etc), all you are doing is delaying taxes. If your tax rate is the same when you earn the money and when you withdraw it in retirement, you didn’t save anything. The goal would be to pay the taxes when your marginal tax rate is lower. If you have a modest income but are saving from an early age and your investments will grow to a lot by retirement, you might be better off paying the taxes now (via a Roth IRA). If you have a large income and are saving little, a 401k or traditional IRA or SEP IRA is better.
It’s also possible that SEP or a Solo 401k could save you from paying a small amount of FICA/social security taxes, which is quite a lot of money. Especially for self employed people.
Is it 20% of my income from my business or 20% of my income (I have a w2 9-5)?
Is for 1099 not for w2
Where is LYFE Accounting located? Cali, I hope.
Excellent.
It’s “conTRIBute”
Thanks man 👊
So what happens if you are the only
Employee and then gain an employee how does this change sep Ira?
I understand that you contribute the same amount per employee or % of their income. Is it true, there is no minimum on this though and doesn't' directly affect how much the employer invests in the SEP IRA?
This video leaves a lot good info out. Like a 401k sólo triples the deductions. He’s comparing to a regular IRA only
Fantastic. Can't wait for your Solo 401K video!
Thanks Ryan!
Thank you for this info, your videos are always precise and straight to the point, appreciate this!
Thanks Michael for your continued support.
Best video I found about SEP IRA
Thank you for this informative video.
Glad it was helpful!
Keep up the great work. Love these videos.
More to come!
Are the limits based on the employee income?
at 2:36 you say, you can contribute up to 20%. However from what I’m reading from other sources you can contribute up to 25% or $58,000 ($61,000 for 2022 ever is lower). can you clarify? Thanks for posting!
I saw another video and if you have an LLC its 20%. Otherwise its 25%
Hey bro
Roxane Rue
If I sell a stock in my SEP, is that a taxable event? For example, I sell stock “A” and make “X” profit, then reinvest in another stock within the SEP?
It is not a taxable event. Only if you withdraw the money from the account.
Good stuff man.
On w2 if i make 60k do i have to invest 25% or do i have a choice to invest less than that like 15% or 10 % ?
Hi. Thank you. Can those functioning as Sole Proprietors also go this route?
yes, I have a SEP IRA as a sole proprietor
Could a SEP IRA be rolled over to a regular IRA if for example you decide to go back being an employee instead of being self employed?
i like your videos, you give dave chapelle vibes lol
As always... another great video! I love you all!!
Yay! Thank you! Are you subscribed?
@@LYFEAccounting Absolutely!
Hi, thank you for the information. Quick question, would I be able to set up a SEP IRA with an ITIN if I don't have a SSN
I am 99% sure you can
@@LYFEAccounting that's very good to know. Thank you for answering my question,
What is the point of this if end of day you can buy mutual funds directly and hold. Then only pay taxed on capital gains when you sell?
If you have employees then it's a benefit for them. Ppl who work for others don't always manage money well
If you buy a mutual fund and hold, that's after tax dollars you are using. If you use a SEP-IRA, that's pre-taxed.
Thanks for a great video. I have a question. I am a freelance musician (small business account/EIN) with extra $ in my bank savings. I’m trying to put the $ into more investment strategies. I currently have a Roth, and it is maxed out. Should I have a SEP as well ? To dump extra cash in… My income is less than $100k/ year .The more than 100k in savings is money that has just built up over my life of saving. Hope to hear back.
LYFE, I am still not understanding what happens with the money sitting in the account, is it earning interest or what? ~~ I am an independent contractor, so how often can I contribute to my account? this is August 2021 so do I have until April 2022 to contribute? and where does one start? the IRS 5305-sep? _ do I need a CPA to do this?
Can you use a SEP IRA to buy real estate?
Look into "self-directed" SEPs and you may.
Can I max my Roth IRA (6k a year) AND still contribute to a SEP IRA?
yes
Can day traders open up a SEP? I keep hearing you say "earned income" and I believe capital gains would be a disqualification?
I don’t see why they wouldn’t be able to.
I was thinking about starting a SEP-IRA, but I already contributed to my Roth-IRA for 2021. Would I still be able to do that?
99% sure that as long as you’re eligible to invest in either one, no rule states you can’t open both a Roth IRA and a SEP IRA.
@@LYFEAccounting From the IRS website: "You can both receive employer contributions to a SEP-IRA and make regular, annual contributions to a traditional or Roth IRA. Employer contributions made under a SEP plan do not affect the amount you can contribute to an IRA on your own behalf." Dated: Mar 11, 2021
Gem
The way he pronounces “contribute” tho lol
So let's say just you and two other friends make a music business can I set up this ira account for the business in case we grow hypothetically.
This is huge tax savings, thanks for explanation
You bet!
I've come to realize that the key to amassing wealth lies in making sound investments. I purchased my first home at the age of 21 for $87,000 and sold it for $197,000. My second home, acquired for $170,000, was later sold for $320,000, and my third property, purchased at $300,000, fetched $589,000, with buyers covering all closing costs and expenses. Not reaching a million before retirement feels like an unfulfilled goal.
You have done great for yourself. I’m trying to get onto the housing ladder at 40. I wish at 55 I will be testifying to similar success!
I initially started my investment journey with the guidance of a financial advisor named *Jenny Pamogas Canaya.* Her transparent approach granted me full control of my investments, and her fees are reasonable, considering my return on investment. Nonetheless, it's crucial to conduct thorough research before engaging with any financial advisor.
I've come across several positive endorsements of Jenny Pamogas Canaya on various platforms, including RUclips channels, seminars, and more.
ok so you need to make around 294,000 to contribute 58k???
Yeah. Look up Solo 401k. If you don’t know about it’s worth finding out about. You can put in more than that per year, traditional or ROTH, & you can borrow $50,000 or 50% (which ever is less) of that with no penalty. You’d have to pay it back (to yourself) tho.
So refreshing to see a black guy that isn't a punk.
You can’t deduct Roth contributions.
Thank you very informative in details!