Cherokee County, Northwest Iowa | 1. I have spent my entire adult life buying into the theory "Pay yourself first", and did that by contributing to a SEP/IRA. (And if you stick to it, it is amazing how much it all adds up-good news.). so, contribute the $15 K to SEP/IRA.
2. Plus I kept hearing the manta "Your tax rate will be lower when you retire". That I didn't totally believe, but kept plugging away anyway. Jury still out on that, but............we'll see, said the Zen Master.
3. I am assuming that during Pres. Trump's time in office, that these will be the lowest income tax rates that we will see the rest of our lives. So, pay the taxes and run. (Also, the best advice today for a young person-pay the taxes and start a Roth IRA-not a SEP/IRA-but I digress).
4. "The 20% deduction was a MASSIVE savings"- So consider that as a gift from above, pay the taxes and run.
5. Old vet trick-cut the herd in half, treat half one way, and the other half a different way. Put $7,500 into SEP/IRA, and pay taxes on the remaining $7,500 and run.
Good luck on your decision. Regards, Bruce. |
SEP IRA/ Tax question
