Are You Paying To Much Tax as Self-Employed?

Updated: Oct 20


Self-employed retirement planning

As a self-employed, you may be paying thousands of dollars more in taxes every year! Therefore, it is very important to correctly understand the tax planning scheme of large enterprises to reduce the tax amount.

  • For general self-employers, as well as SME owners

  • Hold a 1099 and have a net income of more than $70,000 to $80,000 a year

  • Those who have not yet established a company


Solo 401(k)

Unlike a traditional 401K, a Solo 401(k) is designed to make a series of important tax planning for the following business owners:

  • Designed for business owners without employees (except spouse)

  • Also known as “Business Owner Only” (Business Owner acts as both employee and employer)



Self-Employed tax saving plan examples

100K SCENARIO

TAX

TAX SAVINGS

Schedule C

$ 29,310

$ 0

+ $6,000 IRA

$ 27,696

$ 1,614

+ Maximum SEP

$ 24,313

$ 4,997

S Corp Receives $100K

$40K salary + Profit Sharing + Solo 401(k)

$ 15,418

$ 13,892


150K SCENARIO

TAX

TAX SAVINGS

Schedule C

$ 49,112

$ 0

+ $6,000 IRA

$ 47,398

$ 1,714

+ Maximum SEP

$ 41,286

$ 7,826

S Corp Receives $150K

$60K salary + Profit Sharing + $19.5K Solo 401(k)

$ 31,233

$ 17,879


200K SCENARIO

TAX

TAX SAVINGS

Schedule C

$ 66,286

$ 0

+ $6,000 IRA

$ 63,201

$ 3,085

+ Maximum SEP

$ 53,749

$ 12,537

S Corp Receives $200K

$60K salary + Profit Sharing + $19.5K Solo 401(k)

$ 47,850

$ 18,436


*These plans are designed according to the actual situation of each customers, the above cases are for reference only!


Still have questions? The best thing to do is talk to a financial professional who can sit with you, calculate the numbers for what you’ll need versus want, and figure out what’s best.

 



The referral of your friends and family is the greatest compliment you can give me. Thank you! 🤝🤝



Feel free to reach me the numbers below, or email me with any additional questions.







LEO LIN/林

Business/Real Estate/Insurance/Annuity Consultant


DOI# 0F29037

DRE# 02128847

Irvine: (949) 656-9135

Diamond Bar: (909) 979-3566


Email: LLFREservices@gmail.com



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