Quote:
|
Originally Posted by slapass
I do this but I was told 15% of my earnings is the cap on keogh/ira/401 like thing). So $7500 in your example.
The other thing that was suggested is a annuity. Fund it now and at least it grows tax free until I need it.
And for the person above. I have passive income. It is not any easier to shelter.
|
On a single person 401(k) you're allowed to put the first 14K of your salary into it, and then you're allowed to do a company contribution of up to 25% of your company's profits, for a total of up to 40K.
Now the 14K may be the deal with 15% of your salary up to 14K per year...but then you have the company match also.
Check with a tax advisor for details....this is something I heard recently on the "Start Late Finish Rich" audio book. I still have to ask my accountant about it.