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“I’m self-used. Provided financial uncertainty about the coronavirus outbreak, should really I continue to make a contribution to my SEP I.R.A.?”

Contributing to a retirement account warrants some warning appropriate now for self-employed men and women, considering that they really don’t get a common paycheck.

Self-employed folks with SEP I.R.A.s (limited for “simplified personnel pension unique retirement arrangements”) generally make annual contributions at tax time, once they wrap up their tax returns and see how their income shakes out. They can help you save 25 per cent of their earnings, up to sure limits. SEP contributions are tax deductible and can be designed up to the tax filing deadline, or later on if the taxpayer will get a 6-thirty day period extension to file.

This yr, provided the sudden slowdown in economic activity, it may be smart to use a submitting extension, postpone a SEP contribution and as a substitute develop a reserve for shelling out payments if desired, reported Patrick Healey, a financial planner in Jersey Town, N.J.

“We’ll know more as to how this operates as we solution July 15,” reported Chris Hesse, chair of the tax executive committee at the American Institute of Certified Public Accountants.

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