|
|
#1
02-24-2007, 05:27 PM
|
|||
|
|||
Contributing to a SEP IRA and later filing as unemployed
In 2006 I filed as unemployed because the amount of write offs I could have made filing as a professional poker player did not compensate for having to pay FICA tax.
This year I am aiming to file as a professional -- mostly because I would like to max out the $42k contribution to a SEP IRA. I am planning to contribute throughout the year, 5-10k at a time. What if at the end of the year, I decide I no longer want to file as a professional? Will I be looking at costly penalties to liquidate the SEP? 
|
|
#2
02-25-2007, 09:18 PM
|
|||
|
|||
|
Re: Contributing to a SEP IRA and later filing as unemployed
Where did you get the idea you qualified as a professional?
Also, you face 6% excise tax on excess funding a SEP that is not allowed. I also think you run a dangerous prescedent that you looked like you were going to file as a professional and then changed your mind due to how your taxes played out. That is not how you determine whether you file as a professional or not (whichever gives you less tax bite).
|
 |
|
|
Linear Mode
