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This video explains whether or not the SEP strategy is for you! It gives a detailed explanation and compares the SEP to the 401k.
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For solo 401k, self empolyee , do I need to us S-Crop to do that ? or I could file as LLC solo ?
this is fire
I like your videos but….Can you please make your videos without that elevator music, its hard to focus on what you are saying…
Can you share the math on this in a spreadsheet form? I'm following but it would be nice to play with my own numbers.
I tried to follow but I felt you were competing with the background tunes. Also it's difficult seeing what you are writing on the dry erase board. I will have to give it another viewing as I felt you had great information to share.
Can I do a SEP in a S-Corp?
Mark you forgot to mention 401K maintenance fee, corporate taxes, payroll taxes and also federal and state taxes we have to pay when transfer K1 to individual income. $10K difference may easily get down to $0.
Aren’t we get taxed 15.3% on K1? I’m so confused
Great information. I want to start a a SDIRA or 401k to invest in real estate. Can you assist?
Thank you so much Mark for educating us!!! This video is 3 years old, I wish i saw it sooner.
but isn't the self employment tax v (.9235) then x 0.5 – meaning you only pay half the SE tax? or is this video just old?
Hi Mark, great video. My question is what if you use the SEP IRA strategy with in the S Corp Your strategy shows a sep IRA within the sole proprietorship, but what about within the S Corp. I currently do a sep IRA through an S Corp. as well as still pay myself a small payroll and dividend the rest like you show. What would be better now SEP ira or 401(k) with net income over 500,000 per year.
Hey now that my k1 gets a 20% write off, does that affect the Strategy? I’m wondering as I contribute more to 401(k) I am listening the amount of taxable income on the K1 which is normally a great thing however, I’m losing the 20% bonus discount on that money. Given that someday I will have to pay tax on the 401(k) it gets a little hard to figure if it makes sense to take more of the 20% while it’s available rather than put away as much money through my corporation. What do you think given the new tax discount on the S Corp. pass through?
If you only count 30% as income and the other 70% as dividend, will that have the added benefit of knocking your income down below the threshold for Obamacare subsidies assuming that the 30% is below that threshold? You say that no one has ever been audited but if this allows you to save $25,000 on health care in addition to $10,000 in FICA, it seems that would perk up a lot of interest at the IRS. I make a little over $100k in profits so doing this could definitely drop me below the ACA income cliff. I have never understood why the IRS does not tell you EXACTLY the minimum of the profits that you have to take as income but I suppose that is another topic. Thanks!
Cool
What about social security if you take a low salary? Also what about asset protection in s Corp
In the example you gave, you never mentioned at what rate the $70k would be taxed under the S Corp when giving yourself a $30k salary. What is that rate?
Really good video, very clearly explained.
Don't mean to be a devil's advocate, but the way the SEP calculation works for Schedule C income is actually 20%, not 25%, and you first have to subtract 1/2 of SE taxes. So a maximum SEP contribution on Schedule C income of $100k is actually around $18500, not $25k