Originally Posted by ilikebikes
1. can part-time employees with no retirement benefits set up an SEP (& would this require an LLC)?
2. are there any other ways to shelter my limited income--currently it is just added to my wife's in our AGI under joint filing?
thanks in advance (and Happy Thanksgiving)
#1;you can set up your IRA; Almost anyone can set up a traditional IRA or Roth IRA. The only requirements are that you generally must have taxable compensation (typically, salary or wages from your job) and be under age 70? in order to put money into an IRA
part time employees themselves can n ever set up SEP IRA ; A business of any size, even self-employed, can establish a SEP. Any business owner with one or more employees, or anyone with freelance income, can open a SEP IRAA SEP IRA plan can be established by a BIZ owner with EMPLOYEES. A SEP IRA is funded 100% by the EMPLOYER , employees do not contribute.however, say
if you , as an owner and member, are starting a limited liability company (SMLLC, I mean), and will be the sole member, then you can open an SEP IRA without an employee.
#2;AS mentioned above;you may set up either traditional IRA or Roth IRA; Traditional IRA contributions are tax deductible on both state and federal tax returns for the year you make the contribution, while withdrawals in retirement are taxed at ordinary income tax rates. Roth IRAs provide no tax break for contributions, but earnings and withdrawals are generally tax-free. Please contact a retirment plan admin for more accurate professonal help