Sole Business Owners Laugh At The Roth
Everybody these days thinks they are sitting so nice and pretty when the Roth IRAs came out and they rolled all their Traditional IRAs into them. Ignorant is their thinking that they were getting a much better tax advantage and more savings power and that the Roth was the King of the IRAs.
Well, let me set the record straight and tell them all that as a small business proprietor I have them all beat with my SEP IRA!
That's right. I get a much greater tax deduction than they can dream about and I can put in practically 10 times more money per year into my account than they ever can.
Do I have your attention now? Let me gladly explain.
A SEP IRA is known as a Simplified Employer Pension Plan. This is the most ideal plan for sole proprietors, partnerships, incorporated and unincorporated small businesses and even includes Sub S corporations and individuals with self employment income. You can even have a SEP IRA if you are covered by other types of plans like a 401k, 403b or 457.
I can make tons of money, have the greatest amount of tax deductions and build up a huge retirement account in ten years while you job working suckers can take up to forty years to save half as much in your retirement accounts.
The only disadvantage I can see with a SEP IRA compared to a Roth IRA is that I have to stop putting money into it at age 70 ½ and then have to start withdrawing it just like a regular IRA. However, if you are still working and trying to set money aside in a Roth after the age of 70 then shame on you for having to work and save so hard for peanuts.
For the past ten years since owning my own business, I have been able to put $49,000 a year into my SEP IRA, deduct 100% of the investment off my taxes and I am set up to retire in another ten years with over one million dollars in my retirement account. And that is before including the interest earning from the account. Beat that Mr. 9 to 5. I'm selling my house, moving to a warmer climate with a nice little check form Uncle Sam and my SEP IRA!
If you are going to have to work for a living, then go into business for yourself. From an IRA point of view, you can save so much more in a shorter amount of time than working for someone else.
Listen to this, if your business gets a bit slow and you need a bit of cash flow, you can roll your SEP IRA into a 401k and then borrow up to 50% of the amount in the account. Then you invest that money in your business, start making a good profit again, set up another SEP IRA, pay down the loan you borrowed, and at the same time deduct the loan and the new SEP IRA investment from your taxes.
Just one of the ways to make money in this tax us to death world. So hurry quick before the government figure this all out and the mighty tax hand strikes us so-called small business owners down!
About the Author
Casey Trillbar is the editor of YourRothIRAGuide.com, which is a website aimed at supplying articles, information and resources to people considering the use of a Roth IRA Agreement for their retirement. http://www.YourRothIRAGuide.com
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