In article <1166713497.161250.148910[at]42g2000cwt.googlegroups.com> ,
"beckkl" <kylebeck[at]gmail.com> wrote:

- quote -

I think the answer is yes, but I'd ask your accountant or tax
guru because you want to get an authorative and right answer.
There are a lot of details here, and you don't want to miss out
on this deal because of a missing dot on an i somewhere. For
example, I recall that the accounts have to be created before
the end of the calendar year, even if they are not funded until
April 15. Again, these laws change enough that normally only
a pro can keep up to date.

-john-

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================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
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I'm starting to lean toward dumping this in a retirement acct. One
question, does anyone know if there is a difference to my tax liability
this year if I put this 30K into a SEP Ira vs a Keogh plan? This
assumes I had no other retirement contributions. I only ask because it
seems I can postpone the decision a few months if can get the full
deduction through a SEP.

Kyle

joetaxpayer wrote:
- quote -

John A. Weeks III wrote:
- quote -

Some would say, "don't let the tax tail wag the dog." (not me) What
bothers me is not your reply, but that the OP states he's planning for a
40% drop in income. I suppose if he finds himself in over his head, he
can withdraw at what will certainly be a lower tax rate. As long as te
new house purchase doesn't bury him, saving for retirement isn't a bad
idea. (getting an equity line set up along with the new first mortgage
is good, too.)
JOE

In article <1166637382.078199.253180[at]n67g2000cwd.googlegroups.com> ,
"beckkl" <kylebeck[at]gmail.com> wrote:

- quote -

$30K in your retirement account will give you a tax savings
of around $10K to $15K. $30K put into your house saves you
nothing tax wise, and actually negates your home mortgage
deduction. A small business retirement account is one of
the biggest tax breaks one can get, so take it while you can.

-john-

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================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

I am currently struggling with what to do with some cash before the end
of the year... I am self employed, and have the ability to put the
extra $$ in a keogh plan. My problem is that I am intending to put
money into a new house next year, so I am hesitant to take anything
from my liquid accounts and tie them up. However, I'm 28 and have only
saved a whopping 10K for retirement. However, I have managed to
accumulate 100K of equity in my home. Now, what would be better, 30K
in a retirement account, or 30K in equity in my home? If I knew my
income would be steady, I would definitely put the $$ into retirement,
but I anticipate taking a "regular job" in a few years, and will most
likely make 40% less per year. So my logic is that I should do what I
can now to ensure I won't be crippled by house payments in the
future........ BUT...... if for some reason I stay making current
income levels, I might regret squandering some of that money away in
tax payments....

any ideas?