If you’ve ever wondered “ what does IRA stand for ?”, then you may be surprised to find out that the IRS defines it as an “individual retirement arrangement”. This is slightly different than the common definition of an “individual retirement account”. Although similar, an individual retirement account is simply one form of the broader range of individual retirement arrangements that exist under the US Publication 590 (the laws where IRA’s come from). … [Read more...]
How I Used My Vanguard SEP IRA to Save Over a Thousand Dollars in Taxes
If you make any sort of sizeable freelance income like I do, then you’re probably already aware that you will owe taxes on all that money you’ve earned. However, I’ve discovered a really neat trick. I’ve found a really simple way to reduce my taxable earnings as well as save even more for retirement than I already was – and all I had to do was open a Vanguard SEP IRA. The results – this year I’ll save over $1,000 in Federal taxes that I would have otherwise paid had I not known about this technique. If you’d like to help yourself to some pretty significant tax savings, then let me introduce you to the concept of the SEP IRA and … [Read more...]