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Daycare and Taxes>IRA and SIMPLE ACCT?
ginacarlisle 09:08 AM 01-31-2018
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
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TomCopeland 10:42 AM 01-31-2018
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.
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Mom2Two 08:47 PM 03-15-2018
Tom,

Are the contributions deducted from business revenue, like business expenses are, or are they just a deduction for income taxes?
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Mom2Two 09:15 PM 03-15-2018
I think what I'm asking is if social security and medicare taxes are owed on IRA contributions.
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TomCopeland 09:45 AM 03-16-2018
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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Tags:investment, investment - simple, ira, ira contributions, roth ira, tom copeland
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