SEP-IRA

Like which ones?

So if you have a traditional IRA, a Roth IRA, a SEP IRA or a simple IRA, those can typically be converted.

Oh, nice.

Yeah.

So those are sort of first conversations we started having.

This, for me, was the biggest, like, relief because I had a feeling that I was doing too much in the SEP IRA.

As a business owner, this is the vehicle, right? This is a great vehicle.

There are other vehicles.

But for me, I had set up a SEP IRA.

basically since 2009 or 2008, whenever I incorporated after my layoff.

And almost every year, I was maxing out this SEP IRA at the advice of my accountant because the CPAs love when you do this because it's a big tax write-off.

It's essentially like a traditional IRA, but the SEP IRA, I think as of last year, you could contribute up to like 70 or $72,000.

You're a business owner, entrepreneurial minded.

Your CPA tells you to put money into a SEP IRA.

in a target date fund.

You're gonna retire in 25 years, here's the target date fund, a great mixture of stocks, bonds, mutual funds, so that by the time you retire, you should have a bunch of money.

And if you don't think they own it, try to get access to it.

Good luck.

So the question is how much control did you just increase by putting it into a SEP IRA? You decreased

it.

Make sure you check with your CPA before you do that because if you have other retirement accounts, it may affect if you can do that or not.

If you're self-employed, you can put money into a SEP IRA, a lot of money, and convert that into a Roth.

That is another way.

Any more questions? On whatever.

Let's think about, okay, you bought some assets or maybe your business took a dive or for whatever reason, you just got real estate professional tax status and got a huge write-off.

How can we take advantage of us being in a low bracket and some of the things that we can think about here? Roth conversions, you're eventually going to put money, you're eventually going to pay taxes on that money that's in your traditional IRAs, 401ks and your business IRAs and solo and SEP IRAs.

So why not pay taxes now at a lower bracket before it accumulates and it compounds and grows into a bigger and bigger and bigger ticking tax time bomb? you may find that it makes sense to sell stock.

Because if you sell stock, if you're married filing joint, and let's say you have zero taxable income, first $90,000 of long-term capital gains is completely untaxed.

It uses our custodian's tax ID number.

And then all profits from that investment go back into the IRA with us, whether that's a traditional or Roth or SEP IRA.

Got it.

Yeah, no.

That was amazing.

Are you taxed on that? Not if it's inside the retirement account.

It's all tax deferred if it's in a pre-tax IRA like your traditional or SEP IRA, or it's tax-free if it's in a Roth IRA.

Oh, wow.