First post on the forum. Reader for about a year, and surgical resident.
With physicians being excluded from tax free contributions to traditional IRAs due to too high of income, backdoor roths seem like the best bet. However, with the ability of small business owners to contribute to SEP (traditional IRA-type tax deferred) accounts nearing $50,000 a year, tax deferred, why shouldn't I just start an LLC and start SEP account? Does the money contributed to SEP account need to come directly from business income or can I legally transfer from personal account to business account and then put into SEP? It seems like there has to be something that I'm missing, or not understanding. Thoughts?
With physicians being excluded from tax free contributions to traditional IRAs due to too high of income, backdoor roths seem like the best bet. However, with the ability of small business owners to contribute to SEP (traditional IRA-type tax deferred) accounts nearing $50,000 a year, tax deferred, why shouldn't I just start an LLC and start SEP account? Does the money contributed to SEP account need to come directly from business income or can I legally transfer from personal account to business account and then put into SEP? It seems like there has to be something that I'm missing, or not understanding. Thoughts?
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