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-   -   IRA and SIMPLE ACCT? (https://www.daycare.com/forum/showthread.php?t=88427)

ginacarlisle 01-31-2018 08:08 AM

IRA and SIMPLE ACCT?
 
Hi Tom. I have 2 retirement accounts. I contributed $5000 to IRA and $6000 to simple I am over 50 how much more can I contribute this year? Also is just the simple contribution deducted before taxes? Thank you

TomCopeland 01-31-2018 09:42 AM

IRAs
 

Originally Posted by ginacarlisle:
Hi Tom. I have 2 retirement accounts. I contributed $5000 to IRA and $6000 to simple I am over 50 how much more can I contribute this year? Also is just the simple contribution deducted before taxes? Thank you

You can contribute up to $6,500 into your Traditional IRA and up to $15,500 into your SIMPLE. Your profit must be at least $22,000 to be able to do this. A Traditional IRA, like a SIMPLE is tax deductible. A Roth IRA is not tax deductible.

Mom2Two 03-15-2018 07:47 PM

Tom,

Are the contributions deducted from business revenue, like business expenses are, or are they just a deduction for income taxes?

Mom2Two 03-15-2018 08:15 PM

I think what I'm asking is if social security and medicare taxes are owed on IRA contributions.

TomCopeland 03-16-2018 08:45 AM

Ira
 

Originally Posted by Mom2Two:
Tom,

Are the contributions deducted from business revenue, like business expenses are, or are they just a deduction for income taxes?

IRA contributions are deducted from federal/state income taxes, not from your profit. This means you still must pay Social Security taxes on your profit. IRA contributions don't reduce your Social Security taxes.


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