SEP-IRA Funded for 2006
Tip It!Now that our taxes are done, I know exactly how much I can contribute to my SEP-IRA for 2006. The great thing about having an account at Vanguard (aside from the low fees) is that they make it so easy to make investment contributions — it literally took about 3 minutes to log in and transfer the funds from our linked bank account to my SEP-IRA. Since I’ll be tracking our self-employment income more closely over the upcoming year, and filing estimated every quarter, I may accelerate my contributions a bit by making them as we go along instead of waiting to contribute the full amount come tax time next year.
Don’t forget to make your 2006 IRA contributions before next Monday!
Published on April 10th, 2007 - 5 Comments
Filed under: Saving & Investing, Self Employment, Taxes
About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!
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April 10th, 2007 at 9:49 pm
Hey Nickel,
Suppose you could invest in ANY and ALL types of retirement accounts… and there were no income limits, etc… how would you “rank” the types of accounts? Does this question make sense? In other words, if you could invest in a 401K, a 403b, a Roth, etc… how would you decide which to invest in FIRST, SECOND, THIRD, Etc…
Wondering about your opinion,
NCN
April 10th, 2007 at 9:57 pm
Good post idea! Watch this space… I’ll put together my answer and then throw it out there for comments as a standalone post tomorrow. Thanks for the idea.
April 14th, 2007 at 6:54 pm
I’m wondering if this year if I should find my 2007 SEP IRA throughout the year, or just do it in a lump sum when tax time rolls around. I’ll be paying taxes on a quarterly basis, so maybe I’ll take care of this at the same time.
April 14th, 2007 at 7:01 pm
Flexo, that’s exactly what I’m mulling over. I’ll probably pay in throughout the year, but err on the conservative side in terms of my contribution amounts. I will then round it out once I figure my taxes next year.
April 13th, 2008 at 9:14 pm
Here’s a question for you: Is an EIN required for a sole proprietor to make employer contributions to an SEP-IRA account? The regs are very confusing. An EIN is required if the SP contributes to a Keogh and if the SP is “involved in IRA”s. But what does “involve” mean??