investment options other than those offered by savings and loan associations and banks, but if you're willing to accept relatively low interest, the Keogh approach can be useful.
Simplified employee plans, on the other hand, live up to their name. The SEP is a means for employers to make contributions to their employees' IRAs. But if you're self-employed, whether full-time or part- time, you are your own employer, and you can make those contributions to yourself!12. The deduction is limited to $30,000 or 15 percent of your net earnings for the year, whichever is less. A number of other rules, somewhat complex, apply to SEPs, but they remain an underused way to reduce taxes and save for the future.
We've only skimmed the surface of the tax law as it applies specially to writers. Many good sources of tax information exist, including the annual editions of books written by J. K. Lasser, several major accounting firms, and H & R Block. If you think you may have a tax problem (or opportunity), by all means seek expert help. The risk of being wrong is great, the cost of losing a benefit easily avoided.____________________
Questia, a part of Gale, Cengage Learning. www.questia.com
Publication information: Book title: The Writer's Legal Companion. Edition: 3rd. Contributors: Brad Bunnin - Author, Peter Beren - Author. Publisher: Perseus Publishing. Place of publication: Reading, MA. Publication year: 1998. Page number: 209.
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