Retire on renewals + avoid self employment

Nov 5, 2018

  1. PCBI
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    PCBI Super Genius

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    whats your plan?
     
    PCBI, Nov 16, 2018
    #31
  2. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    One that is based on experience.

    You want to share but you dont want people to ask questions? I was trying to have a genuine conversation with you.

    Good luck to you kid.
     
  3. PCBI
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    PCBI Super Genius

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    SEP IRA does avoid FICA bc its offset is the taxable income which is what FICA taxes
     
    PCBI, Nov 16, 2018
    #33
  4. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    scagnt83 was trying to find out more about your planning so he can offer ideas and recommendations. That's what planners do. That's what *I* do.

    And if someone doesn't want to answer my questions, I would say the same thing: "I wish you well. If I can be of service, you know how to reach me."
     
    DHK, Nov 16, 2018
    #34
  5. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    Your responses have answered my original question more than you could ever know.
     
  6. PCBI
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    PCBI Super Genius

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    glad u can find closure in ur good luck “kid” mentality. BTW hows that high horse view from above. “More than I could ever know” Im sure.

    pathetic self righteousness more like
    smh
     
    PCBI, Nov 16, 2018
    #36
  7. PCBI
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    hmmm thats an opinion and interpretation. there was enough information from the original post to share away his opinions.
     
    PCBI, Nov 16, 2018
    #37
  8. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    A Self Employed Individual is different than an Employee of a company.

    SE Taxes (FICA for self employed tax returns) are calculated prior to SEP Contributions being made.

    This means the actual "Contribution" or transaction is not a separate taxable event for an Employee.

    But the calculation for SE Taxes is on the amount of money prior to making the SEP Contribution. So a Self Employed individual is not able to avoid SE Taxes by making SEP Contributions.
     
  9. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    [​IMG]
     
    DHK, Nov 16, 2018
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  10. PCBI
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    u are right i am wrong
    thank u for your input

    For a self-employed person contributing to his or her own SEP IRA, contributions are deducted as an adjustment to income on Form 1040 line 28. SEP contributions reduce a person's adjusted gross income, reduce taxable income, and thereby reduce the federal income tax. SEP IRAs do not impact the calculation of the self-employment tax, since the self-employment tax is calculated before SEP contributions are calculated. A self-employed person reduces income tax only by contributing to his or her own SEP IRA.

    A self-employed person who contributes to SEP IRAs for his or her employees boosts business expenses. This lowers net profit, reducing both the self-employment tax and the income tax.
     
    PCBI, Nov 16, 2018
    #40
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