Any small business owners.....401K type question

**MadTiger** · 12-16-10, 08:39 AM

Look into Roth IRA as well.

(While I am self-employed as a business consultant, I haven't done a SEP IRA).

**jwbama23** · 12-16-10, 09:13 AM

Roth won't let you avoid taxes to your business

**Cabo** · 12-16-10, 09:26 AM

What type of entity are you - Self Employed, Partnership, Corporation?

**zam77** · 12-16-10, 09:54 AM

Since your accountant knows your financial situation self emp. income, and this is the IRA he recommended... it's probably the right choice. Sep is also good because it has a smaller early withdrawal penalty than others.

Sounds like your having a good year... congrats.

**ngates815** · 12-16-10, 11:04 AM

Originally posted by Cabo

What type of entity are you - Self Employed, Partnership, Corporation?

It's a LLC....My dad talked to another place that has a similar type shop as we do but they have 5 people working, and they do the SEP IRA through fidelity.

Originally posted by zam77

Since your accountant knows your financial situation self emp. income, and this is the IRA he recommended... it's probably the right choice. Sep is also good because it has a smaller early withdrawal penalty than others. Sounds like your having a good year... congrats.

We've been up and running for 4 years...Paid off all the loans and machines the first 2 years, while we both were making shit for money. Now that all the stuff is paid off things have been alot better. Work has still been coming in pretty steadily and hopefully it continues for the year to come. The company that we both used to work for(me 4 years my dad 28), wanted us to move up to Wisconsin and work there, but we talked to them and asked if we opened our own shop if they'd send us work. They are one of the biggest companies in the industry for what they do, and they keep buying other smaller(rival) companies and expanding, but we just do the machine work for them.

**big0mar** · 12-16-10, 11:10 AM

SEP is a good idea...

Not sure about your health insurance situation, but a health savings account is one of the things I use to reduce my tax burden.

**jbrent95** · 12-16-10, 11:11 AM

I have 7 employees and we all have a SEP-IRA. Look at Fidelity.com or similar company.

**ngates815** · 12-16-10, 11:19 AM

Originally posted by big0mar

SEP is a good idea... Not sure about your health insurance situation, but a health savings account is one of the things I use to reduce my tax burden.

Yea I have an HSA account that gets funded...Only use it twice a year for dentist checkups.

Originally posted by jbrent95

I have 7 employees and we all have a SEP-IRA. Look at Fidelity.com or similar company.

Thanks, that's what site were looking at is fidelity.com

**zam77** · 12-16-10, 11:20 AM

Good to have em' on your side, I assume. Making it through the recession for most small biz's was tough, especially if you're only 4 years in... so that's great. I've been in business for 8 years, and am just getting back on my feet after the recession hit. Had around 10 to 12 FT and PT employees before recession, then went down to 4 to 6 and made paycuts. Back up to 10 right now so things are getting better. But it was tough for a while. Bottom line is I am just happy I'm the one rocking my cradle at night, not someone else. The recession made me a better business owner though... talk about money management, most of the people on here have no clue.

**ngates815** · 12-16-10, 11:23 AM

Originally posted by zam77

Good to have em' on your side, I assume. Making it through the recession for most small biz's was tough, especially if you're only 4 years in... so that's great. I've been in business for 8 years, and am just getting back on my feet after the recession hit. Had around 10 to 12 FT and PT employees before recession, then went down to 4 to 6 and made paycuts. Back up to 10 right now so things are getting better. But it was tough for a while. Bottom line is I am just happy I'm the one rocking my cradle at night, not someone else. The recession made me a better business owner though... talk about money management, most of the people on here have no clue.

Good to hear...It was a little scary in the beginning, I wasn't paid for the first 9 months working here, and my dad wasn't paid for the first year.

Keep up the good work ZAM.

**jwbama23** · 12-16-10, 11:26 AM

Ngates, just a heads up....much better performing and cheaper companies than Fidelity. They spend most of their money on marketing. Their performance is not as good as some other solid companies out there.

You dont want your returns getting eaten up by 500 commercials during a typical Saturday football game or golf tournament.

**ngates815** · 12-16-10, 11:45 AM

Originally posted by jwbama23

Ngates, just a heads up....much better performing and cheaper companies than Fidelity. They spend most of their money on marketing. Their performance is not as good as some other solid companies out there.

You dont want your returns getting eaten up by 500 commercials during a typical Saturday football game or golf tournament.

Suggestions that I could look into? My dad just asked me to look into SEP IRA's and see what's out there. He mentioned fidelity, that's why I put it out there.