SEP-IRA Funded for 2006

Written by nickel - 5 Comments

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
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Comments (scroll down to add your own):

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
Comment by NCN — Apr 10th 2007 @ 9:49 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.

Comment by nickel — Apr 10th 2007 @ 9:57 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.
Comment by Flexo — Apr 14th 2007 @ 6:54 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.

Comment by nickel — Apr 14th 2007 @ 7:01 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??
Comment by KF — Apr 13th 2008 @ 9:14 pm