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
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.
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.
Tweet
Comment