Comments on: My Six Biggest Tax Deductions for 2006: 401k/Retirement Contributions http://www.bargaineering.com/articles/my-six-biggest-tax-deductions-for-2006-401kretirement-contributions.html personal finance blog with anecdotes, advice and commentary. Sun, 12 Feb 2012 23:30:41 +0000 hourly 1 By: Bryan Decelles http://www.bargaineering.com/articles/my-six-biggest-tax-deductions-for-2006-401kretirement-contributions.html/comment-page-1#comment-223959 Bryan Decelles Wed, 12 Mar 2008 03:04:25 +0000 http://www.bargaineering.com/articles/my-six-biggest-tax-deductions-for-2006-401kretirement-contributions.html#comment-223959 You might want to consider a company sponsered 401K plan if you are self employeed and a one person company. It may have some interesting advantages. I am just starting to learn about this option and would appreciate comments. So it seems that though employee matching and profit sharing you can contribute up to $45,000 (well above the 15,500 limit if you worked for someone else). Further is seems that the 401K is considered as a reduction in your MAGI while the SEP is not considered a reduction in you MAGI just AGI. There are a number of advantages to reducing you MAGI for a number items including in my case 1K/kid child credits, and 25K/year passive loss from real estate (MAGI 120K-150K). You might want to consider a company sponsered 401K plan if you are self employeed and a one person company.

It may have some interesting advantages. I am just starting to learn about this option and would appreciate comments. So it seems that though employee matching and profit sharing you can contribute up to $45,000 (well above the 15,500 limit if you worked for someone else). Further is seems that the 401K is considered as a reduction in your MAGI while the SEP is not considered a reduction in you MAGI just AGI. There are a number of advantages to reducing you MAGI for a number items including in my case 1K/kid child credits, and 25K/year passive loss from real estate (MAGI 120K-150K).

]]> By: Foobarista http://www.bargaineering.com/articles/my-six-biggest-tax-deductions-for-2006-401kretirement-contributions.html/comment-page-1#comment-51868 Foobarista Wed, 20 Dec 2006 03:44:28 +0000 http://www.bargaineering.com/articles/my-six-biggest-tax-deductions-for-2006-401kretirement-contributions.html#comment-51868 Don't forget Self-employed 401Ks. SEP-IRAs are useful if you have both work income and access to a work 401K as well as Schedule C income, or have employees outside your immediate family in a business, but Self-employed 401Ks are better in most cases if you're self-employed. Don’t forget Self-employed 401Ks. SEP-IRAs are useful if you have both work income and access to a work 401K as well as Schedule C income, or have employees outside your immediate family in a business, but Self-employed 401Ks are better in most cases if you’re self-employed.

]]> By: jim http://www.bargaineering.com/articles/my-six-biggest-tax-deductions-for-2006-401kretirement-contributions.html/comment-page-1#comment-51792 jim Tue, 19 Dec 2006 21:32:20 +0000 http://www.bargaineering.com/articles/my-six-biggest-tax-deductions-for-2006-401kretirement-contributions.html#comment-51792 Ahhh very true, I mis-wrote, thanks! Ahhh very true, I mis-wrote, thanks!

]]> By: bad username http://www.bargaineering.com/articles/my-six-biggest-tax-deductions-for-2006-401kretirement-contributions.html/comment-page-1#comment-51789 bad username Tue, 19 Dec 2006 21:20:55 +0000 http://www.bargaineering.com/articles/my-six-biggest-tax-deductions-for-2006-401kretirement-contributions.html#comment-51789 You can't deduct it from your Sched C income. It's counted as income and subject to self-employment tax, but then it is deducted "above-the-line" on your 1040. You can’t deduct it from your Sched C income. It’s counted as income and subject to self-employment tax, but then it is deducted “above-the-line” on your 1040.

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