I want to know the choices for deferring taxes on income for retirement savings.
I know of 401k (and 403b) for workplace programs. What about second
jobs which are either LLCs, sole proprietor ships, or similar self
employed endeavors? This is for a second job, and I am looking for
options to defer income.
A friend and I were talking about this earlier in week. Our
situations are similar, but have enough differences where what applies
to one of us does not apply to other necessarily.
Me: I work for a publicly owned company, have a 401k, and send close
to 7k to this plan (before the match). I also max out my Roth (did
not know I could use a deductable IRA until this morning). I also
work a second job (coaching soccer) which clears me 10k per year.
Some of this is reported on a 1099, some of this is not. I have no
legal company set up. What would be my best choices to defer taxes on
this income (for retirement)? One follow up question will be if the
15500 401k limit interferes with the amount I can defer from a second
Friend: He is a firefighter (works for township) and has a government
pension plan. I am not not sure if this is considered a 403b or 457
type plan or not. Neither did he. No other workplace retirement
plan, and I don't think he has an IRA set up (yet). He also owns his
own safety company (does training and workplace audits), and also
flips/rents houses when the other two don't keep him busy. The safety
company is a LLC. What choices would the LLC provide for deferring
income for retirement?
If there is a portion of IRS documents which cover this, please point
me there first (so I can do some research). Any other comments are
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- posted 12 years ago