An article in Equity Trust Company's newsletter "The Ultimate IRA Report" once again highlights the benefits of the individual 401(k).
The nice thing about this one is that they have a table showing sample incomes incremented by $20,000 and the corresponding 2005 contribution limits for Simple IRAs, SEP IRAs and Individual 401(k)s. It's a good one for quickie reference.
What has escaped my attention until this particular article is that while those doing business as sole proprietors can contribute 20% as profit sharing, those with an incorporated business may contribute as much as 25%.
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