Skull Pilot
Diamond Member
- Nov 17, 2007
- 45,446
- 6,164
- 1,830
You can get the employees to opt out of the SEP IRA, which shouldn't be a problem if you have 401Ks for them.You might want to check this out...as you wouldn't need another business to contribute to it, and you can put up to $49K per year into it.
SEP IRA | SEPIRA.com
As for the barn office, you can still only write off a small portion of it as it is your personal property, no?
But with a SEP the provision is 25% of income up to 49K a year. The 401 does not have that limit so in reality I can save more with the 401 because the income the LLC generates is by design just enough to max out the second 401s
The 25% limit would mean to put 16500 away that we would need a 66K income from the LLC for each of us.
And a SEP for the corp would not be a good idea because we have 10 employees. A SEP only makes sense if you have no employees.
But the 25% limit still hits us. Neither one of us pulls a large salary from the corp. i would rather take the money as a distribution and avoid all the payroll taxes