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Jordans 11 Blackout

Jordans 11 Blackout

assume you mean the limit is a total for all contributions, $17,000 for 2012. So, if I have my day job and contribute money there, and have a C corp company that owns my rentals and pays me a salary from the rental income, then I could contribute to that company 401k, too. As long as the total was less than $17K (plus catchup, which, unfortunately, does apply to me.)

I assume you mean the limit is a total for all contributions, $17,000 for 2012. So, if I have my day job and contribute money there, and have a C corp company that owns my rentals and pays me a salary from the rental income, then I could contribute to that company 401k, too. As long as the total was less than $17K (plus catchup, which, unfortunately, does apply to me.)

As I mentioned what makes sense for this individual posting the questions depends upon their personal preference first and foremost and then from a numbers perspective it would be good to understand exactly how much income are they talking about from this property, what is their marginal tax bracket and what are the investment options they are considering for this cash flow they are receiving.

Here is an article to read from CNN Money. You just cannot exceed the contribution limits.

Honestly, I not sure I even want to do something like this. I have a large percentage of my assets in qualified plans, and a much lower percentage outside qualified plans. I guessing tax rates will be higher in the future, and those qualified plan monies are going to get taxed later.

The simplest thing is just to use the income from your rentals to fund your contribution to your IRA. Unfortunately, that only a few grand per year and is subject to income limitations.

Jordans 11 Blackout

Not sure how much income you are actually receiving once you factor in any expenses that you get to offest the income such as (taxes, insurance, repairs, mortgage interest, and depreciation) Maybe you paid cash for these and have great cash flow with no mortgage interest deduction. As many have mentioned you could open an IRA and simply make a contribution to the IRA that would offset some of the income. There are some ways that you can use life insurance and get some benefits for deferred taxes and they will talk to you about how you can borrow against the life insurance when you need the money and essentially never pay taxes and then you will have a death benefit that pays off the loan when you die and leave your beneficiary with whatever is left and never having paid taxes. Problem with most real estate investors is that if you are buying properties that are producing such great returns for you to produce this income that you are wanting to defer taxes on you also need to consider the investment options you will have in that life insurance vehicle or any other vehicle. I certainly wouldn want my money deferred into an account that it going to average low single digits if I had the abilty to buy great cash flowing rentals producing well in excess of that.

If a corporation is set up then we are looking at the possibility of double taxation.

Nobody knows what the future holds but with the possibility of all of us losing some ability to shelter income the discussion now is purely academic.

I see people doing everything to avoid paying taxes and at times they are not in a real high marginal tax bracket to begin with.

Jordans 11 Blackout

Placing rental income into a retirement account

Jordans 11 Blackout

Don these Solo 401k plans have much higher limits, like $45K or some such? How does that come into play?

Jordans 11 Blackout

I have about 20% of my net worth in deferred accounts so not feeling like there is too much there.

I have clients who contribute to the maximums and now roll over each year the amounts in full. This allows them to pay tax now and have greater contributions to the ROTH accounts.

Jon is correct. your best bet would be to consider operating a company that handles the rentals. This is one of the reasons some choose treatment of their rental income on Schedule C after opening a (single member Jordans 11 Blackout LLC) or a corporation (S or C). Depending upon how great their income is they can choose to open a retirement plan, You can have a Solo 401k, You can also have what is called a defined benefit plan can allow funding into a pension up to $200,000. This Jordans For Sale At Foot Locker

You might look into a Solo 401K and see if you could set up a company that owns rentals and using the income to fund the 401K. The contribution limits are much higher. You do need to watch out for the self dealing rules. Those probably mean you can put current rentals into this deal. You already own those, so selling them to a qualified plan of any sort isn allowed. Solo 401k don work for me because I have a regular job, so I not looked at them in detail.

returns, let say in excess of single digits on cash purchase I think an investor needs to fully think about the tax advanatages of deferring income taxes in a life insurance policy that is going to limit their investment options and their returns.

I don know what my brackets will be having 3 months of W2 this year and don know what my income will be next year when (and if) I get something going.

plan has the same contribution limits, they just allow for profit sharing contributions of up to 25% of your salary.

Jordans 11 Blackout

Jordans 11 Blackout

Don these Solo 401k plans have much higher limits, like $45K or some such? How does that come into play?

Jon, You might want to consider rolling over the amounts contributed to a ROTH account each year. Yes, you will pay tax on it now; however, it will be exempt from taxation later on. After 5 years you can pull out the principal anyway. That means you can invest it in real estate and not worry about having to tap into it at a later time.

The solo 401k Jordans 11 Bred Low

Also it sounds as if you are no longer employed in w 2 position so what is your taxable income and your marginal tax bracket: Are you in a high tax bracket where it makes sense to defer all this income?

Jordans 11 Blackout

Originally posted by Steven Hamilton II:Jon Holdman, there is nothing in the tax code preventing you from having a 401k from more than one company. You just cannot exceed the contribution limits.

I am 6 mo into retirement and expect to get something going after a year retired. I don know what I will make but am looking at the pros and cons of sheltering some income.

can eliminate the need for paying a salary or a paying Self Employment tax by bringing earnings down to zero.

Jordans 11 Blackout

Not sure if you read my entire post as I not an advocate for cash value or whole life insurance. As I mentioned in my post if you are making good Nike Jordan Retro 4 Fire Red

Jordans 11 Blackout

Jordans 11 Blackout

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