Robert Jacks Emini SP Trading System
Emini Trading Strategy for the Emini SP
401 (K) - SEP - IRA Retirement Plans
Copyright 2003 - 2010 Robert Jack's Consulting Co. All rights reserved.
Trade signals for 1 or 2 high probability setups per day --- that's all you need to earn a good living day trading the S&P E-Mini.
Even if you are an individual with substantial trading profits, you will not be able to make any type of retirement contribution based upon those profits. You must have "earned income" and the IRS says trading profits are not earned income. You must therefore have a separate business entity for your trading business, such as a corporation, in order to establish a retirement plan. Your corporate salary then becomes your earned income. Contributions to a retirement plan are tax deductible up to certain limits and the earnings on the contributions are not taxed until they are withdrawn from the plan.
There are various options when it comes to selecting the right type of retirement plan. It is something that should be carefully considered and not hastily decided upon. It is not within the scope of this discussion is to provide complete information about retirement plans. It can though give you some basics to get you started.
401k Information - Retirement Plans for Traders
Generally, a business may contribute up to 25% of your salary to a retirement plan. If the plan also includes a 401(K) feature, you can additionally defer up to $15,500 for 2008 and $16,500 for 2009. If you are age 50 or older, you can defer an additional $5,000 for 2008 and $5,500 for 2009.
The total amount of contributions and deferred salary cannot exceed $46,000 for 2008 and $49,000 for 2009. If you are age 50 or older, increase those amounts by $5,000 and $5,500 respectively.
If you have a 401k plan at your old employer, you can do a tax-free 401k rollover of that plan into your new sole 401k plan.
