SEP IRA vs. other plans? What should you recommend?
2nd Mar 2020
Heads up, while your head’s down 😉
Want big tax savings – tens of thousands of dollars annually – for your high-income, self-employed clients in 2020? Consider recommending a Defined Benefit plan instead of a SEP IRA for clients paying too much for 2019. Here’s how:
Which types of clients should you look for?
High K-1 or W-2 for small S-corp owners (with 1-10 employees)
Schedule C Net Profit (line 31) for sole proprietors which exceeds $200,000
SEP-IRA and 401(k) clients who want to contribute and deduct more in 2020