I have an opinion question.

I am in the real estate development and investing world.

My accountant has me putting money into a SEP IRA for deferred taxes until retirement. The problem that I believe I have come to realized is what happens if my income continues to climb even into retirement based off of property income.

What happens if I put all of this money in and then after 65 I am still at a high earning level because of income from property?

Am I wasting my time with the SEP?

This may not answer your question but if you want a Roth option for a sole proprietorship look at the solo-Roth 401K.

You could consider converting all or some of it to Roth IRA! Will cost you taxes now but grows tax free provided you leave it in there until 59.5.

www.holisticplanning.com

I wouldn't call it a "waste of time" to get tax-deferred growth right now. If you just put your retirement savings in a standard brokerage account, then you'll be paying tax each year on your dividends.

Late 90s cashed in the IRA to help with a down payment for land as an investment. My cpa thought I was crazy for doing that, depleting my savings and paying the penalty. But I knew the area and the property. Turned out great and I couldn't have made a better investment. Have purchased and sold multiple tracts since then but making that deal work with my savings was key to a start.

What area you in

nactownag said:

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You could consider converting all or some of it to Roth IRA! Will cost you taxes now but grows tax free provided you leave it in there until 59.5.

www.holisticplanning.com

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This seems to be the answer I am getting a lot.

Yukon Cornelius said:

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What area you in

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Mainly income fund of America, Investment company of America, small cap world fund and Washington mutual .

If your down side is taxes because you are making too much passive income in retirement, you really don't have a problem.

You can also the use SEP to make qualified charitable donations (up to the annual limit) tax free once you reach RMD age.

It's actually age 70.5 not the RMD age anymore. Used to be the same but now the RMD age is pushed back further.