retirement accounts

Discussion in 'Professional Trading' started by ringo123, Nov 28, 2005.

  1. ringo123


    As a trader making over 150k and filing mrkt to mrkt what are my retirement investment options. Can i do a SEP?
  2. You can't do jack until you form either an S-Corp or an LLC and start trading with company money. Then you can pay yourself a regular W-2 salary out of your earning which will allow you to take all kinds of pension plans up to 41K per year for you and another 41K for your spouse (if you can validate her working for the business and getting a W-2 also). Soon your pension savings will surpass your personal and corporate savings...really it is amazing how fast tax deferred money with no expenses grows compared to your trading business wich is riddled with taxes and expenses.

    enjoy and good trading!
  3. Income that isn't "earned income" can't be applied to an IRA. As far is the IRS is concerned, income from trading is not earned income. Reference the previous post to make it so.