If you are self employed, own a sole proprietorship, own a small business, own an s-corporation, or own an LLC - you should take a look at this SEP-IRA tax tip I posted on this blog last year. For single-owner businesses or businesses with few employees, it is one of the best solutions that I have found for cutting your tax bill this April. This year, the contribution limits have increased slightly from last year:
Tax year 2007 SEP-IRA contribution limit: Up to 25% of compensation up to as much as $45,000
Tax year 2008 SEP-IRA contribution limit: Up to 25% of compensation up to as much as $46,000
So, regardless of how much your business made in 2007, the SEP-IRA allows you to stash some of it. If you made a little or a lot, it probably makes sense for you to keep some from the tax man and invest in your future. It is not too late to set-up an SEP-IRA for your 2007 taxes - so take a closer look!
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1 How a SEP-IRA Can Cut Your Taxes // Feb 24, 2008 at 5:55 pm
[...] *Update: Find tax year 2007 and 2008 SEP-IRA contribution limits here [...]
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