Tax Tip #340

If you are self-employed, you can still set up a retirement program and take advantage of contributions on your personal income tax return. A self-employed person is eligible to set up a 401(k), SEP or a SIMPLE retirement account in addition to funding a ROTH IRA. If you employ your spouse, you can fully fund these retirement accounts and they will be deductible. Your spouse employee's contributions are deductible on the Schedule C and your contributions are deductible on page one of the 1040.

 
This information is provided in an effort to help you gather and organize the information necessary to file your individual or small business income tax return. While these financial tools are not a substitute for financial advice from a qualified professional, they can be used as a starting point in your decision making process.