Quote:
Originally Posted by ilovetv
Do you have any clue that there are different kinds of IRA's, for different income levels and their taxation??
$6,000 maximum?? Have you ever heard, for example, of a SEP IRA, for self-employed people???
SEP IRA
Best for: High-income business owners who want to maximize contributions through an uncomplicated plan with low fees. SEPs also work well for small-business owners with mostly low-paid, high-turnover employees, because there's no vesting structure and less incentive for employees to stay long-term.
With a simplified employee pension, or SEP, you can contribute up to 20% of your net self-employment income (which is income minus half of your self-employment tax) to a SEP, up to a maximum of $49,000 for 2009. The deadline is October 15, 2009, if you get an extension for filing your 2008 tax return. There's no additional salary deferral, so your income must be at least $245,000 before you reach the $49,000 contribution level.
Kiplinger.com |
If it is a SEP-IRA, let's say he contributed $50K per year (to make the math simple) for 30 years - that is still only $1.5M in contributions. Also, we know that $50K would not have been the limit for all of those 30 years as there have been incremental increases. In addition, I'm not certain that he would have been eligible for a SEP-IRA during all of those years because he was an employee (Boston Group and IOCC) at certain times in the past 30 years.