# SEP IRA



## ginseng41 (Nov 30, 2014)

I just wanted to throw this out there for anyone who hasn't filed yet. As a self employed individual, you can contribute up to 25% of your net income to one of these and deduct it as a regular business expenses. It reduced my tax liability by $800 between state and federal. You won't be paying the payroll taxes on this amount or other income taxes, so it can be a really great deal.


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## RamzFanz (Jan 31, 2015)

ginseng41 said:


> I just wanted to throw this out there for anyone who hasn't filed yet. As a self employed individual, you can contribute up to 25% of your net income to one of these and deduct it as a regular business expenses. It reduced my tax liability by $800 between state and federal. You won't be paying the payroll taxes on this amount or other income taxes, so it can be a really great deal.


Good point. You can also shelter income in education accounts for your kids if you have them in many states.


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## ginseng41 (Nov 30, 2014)

That's a totally different type of contribution that's after the 15% payroll tax


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