Retire on renewals + avoid self employment

[PCBI]

out of curiousity
why?

whats your plan?

 

[scagnt83]

whats your plan?

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.

 

[PCBI]

Easy. Stay Employed and put it in a Pension Plan.

Defined Contributions Plans (401k/SEP/IRA/etc) do not avoid FICA/SET.

Defined Benefit Plans (Pensions/Cash Balance/etc) avoid FICA/SET.

However, it probably would not make much sense to put just $10k into a DB Plan. If you had a spare $50k then it would make a lot more sense.

SEP IRA does avoid FICA bc its offset is the taxable income which is what FICA taxes

 

[DHK]

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."

 

[scagnt83]

Sounds like. slap in the face good luck. Didnt get what u want so u slap? really? how about contributing information instead of nosey personal requests. If u noticed “kid” the whole premise of this thread was a question not a sharing of personal information.

From ur response sounds like a client not giving u something gets a infantile “thanks, good luck w ur investments”

Oh btw wtf is ur plan?

smh

Your responses have answered my original question more than you could ever know.

 

[PCBI]

Your responses have answered my original question more than you could ever know.

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]

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."

hmmm thats an opinion and interpretation. there was enough information from the original post to share away his opinions.

 

[scagnt83]

SEP IRA does avoid FICA bc its offset is the taxable income which is what FICA taxes

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.

 

[DHK]

hmmm thats an opinion and interpretation. there was enough information from the original post to share away his opinions.

 

[PCBI]

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.

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.