Saving for the furture/tax savings

Discussion in 'Business Operations' started by accuratelawn, Feb 4, 2003.

  1. accuratelawn

    accuratelawn LawnSite Senior Member
    Posts: 922

    I know that some here are looking long range (retirement). For those that are not thinks about it for a minute. You might be making good or great money now, but how long can you keep up the pace? 5 years, 10 or 20? What will you do later in life?
    I always put the max into IRA's and then the Roth IRA's. This option only allows so much per year.
    I met with a financial planner last week and set up a profit sharring plan which will alow me to invest 40K per year. This will greatly reduce reportied income. The earnings will be tax defered.
    I would be happy to tell anyone more, but this post is already getting long.
     
  2. scott's turf

    scott's turf LawnSite Senior Member
    from NH
    Posts: 949

    wow investing 40k per year. You must be doing well for yourself!!
     
  3. lsylvain

    lsylvain LawnSite Senior Member
    Posts: 777

    SEP, SIMPLE, and other qualitfied plans for self-employed people. Line 31 on your 1040. They are usually called a Keogh Plan. the lesser of 20% of self-employed income or an inflationary adjusted base amount ot $40,000 for 2002 can be used to reduce your agusted gross income.

    Hope this helps
     

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