- quote -

With an accounting trick, a SIMPLE-IRA does have the same limit as a
SEP-IRA for the self-employed. 10K employee contributions and then
increase employer matching to hit the max 44K total. Obviously, it
would be silly to go around this roundabout way to make it match a SEP
plan. Most companies probably charge more for the SIMPLE plan --
looking at Vanguard, they charge $10 per fund unless fund amount is 5K for a SEP versus $25 per fund unless total plan assets is > 100K
for a SIMPLE.

On Feb 25, 12:21 pm, a...[at]oursportscentral.com wrote:
- quote -

Deadline for SEP is date of company tax filing. So if you are a sole
proprietor, 4/15 is the date.

- quote -

Making a SEP contribution would drop your MAGI to a point where you
may qualify for a Roth IRA.

On Feb 25, 12:25 pm, "John A. Weeks III" <j...[at]johnweeks.com> wrote:
- quote -

John,

I appreciate the insights. Is it too late for me to set up a simple
IRA and take the deduction on my 2006 taxes or do I have until tax
day? Unfotunately, I won't be able to max out the Simple IFA, and I
still fall within the income requirements to be able to do a Roth. It
still sounds as if you're saying to put as much as possible into the
Simple IRA, though, and forget about the Roth at this time.

Paul

As John said, I would consider a SEP over a SIMPLE. Higher limits, no
two year restrictions, low expenses, etc...

In article <1172418765.114833.13770[at]t69g2000cwt.googlegroups.com> ,
admin[at]oursportscentral.com wrote:

- quote -

The benefit of the Simple IRA is that you can put away a whole
lot more money per year. If you hit the max on the Simple, consider
a SEP IRA, which has even higher limits on how much you can put
away. This is probably one of the top 3 best deductions available
from the IRS. Another consideration is that the Roth IRA has a
cap on income, and if you exceed that, you cannot use it. The
traditional also has an income cap. If you exceed it, you can still
use the IRA, you just don't get the tax benefit.

-john-

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

I am self-employed with no employees, and I'm looking into my
investing options for this year, but I have a couple of questions.
First, my tax accountant told me that investing in a Simple IRA would
save me about 25 percent of the invested amount in taxes. Is it better
for me to invest in the Simple IRA than a Roth IRA? I'm not sure if
the tax savings now are worth the taxes in the future. Second, can I
invest in both a Roth and a Simple IRA right now? I have thought
about
fully funding the Roth and then investing some amount into the Simple.
Any suggestions are appreciated by this investing newbie.