View Single Post
  #4 (permalink)  
Old 03-15-2008, 06:45 AM
sweeps sweeps is offline
Hopeless Optimist
 
Join Date: Oct 2005
Posts: 4,340

Points: 29382.30
Donate
Default

Ok, sorry, assumed you were married.

Your income is still relatively low, so a Roth IRA probably benefits you more in the long run. (Also keep in mind that $5,000 of after-tax contributions is worth more than $5,000 of pre-tax contributions.) Plus it seemed like you didn't want to go through the hassle of opening another retirement account.

One clarification... contributing to a SEP IRA does not lower the SS/medicare taxes you have to pay, just your income taxes. You can always do both a Roth and a SEP later if your income continues to grow. Again, in your tax planning software, see how contributing to 1 or both changes your numbers.
Reply With Quote