Consumerism Commentary

Top stories: Irreplaceable at WorkWill Taxing Oil Companies Help the Economy?Didn't Receive Your Stimulus Payment? • Got tips? Email tips at this domain name.

MoneyBlogNetwork

Archives By Month

pfblogs.org Blogroll


Randomized Blogs

Site Sponsors


TIAA-CREF Funded My SEP IRA!

By Flexo on Friday, April 28th, 2006 in Investing
Bookmark: del.icio.us | reddit | digg

TIAA-CREF LogoTIAA-CREF has finally come through! You may have been following the saga. If not, here’s the short version: In order to reduce my tax liability from self-employment income, I wanted to open a SEP IRA. The SEP IRA lets you contribute tax-free beyond the Traditional/Roth IRA limit, but only as an employer. I employ myself and generated several thousand dollars last year, so I qualify.

There are more details about SEP IRAs here, but basically I was allowed to invest up to 25% of my income or $42,000, which ever amount is less. Needless to say, I didn’t invest $42,000. In fact, I only invested $858, but it was enough to turn my remaining 2005 tax liability into a tax refund.

I applied for the account in March and my application was received on time by TIAA-CREF in order for my funds to be deposited via EFT on April 7. I tried to leave enough time before the tax deadline (April 17) just in case I ran into problems.

Ran into problems I did. I think it’s just attributable to the fund company’s backlog during tax season, but they didn’t get around to funding my account. I called several times as I mentioned in previous posts, and I’m happy to report that today, the account was finally funded. I was assured the contribution would be “coded” to qualify for the 2005 tax year, even though it is now past the tax deadline and I didn’t file for an extension.

I chose the TIAA-CREF International Equity Index Fund (TRIEX) to increase my exposure to international stocks as I felt that sector could use a little boost in my allocation.

Throughout 2006, I will continue to contribute to the SEP IRA on a “once-in-a-while” basis. I want to make sure I don’t go over the limit (25% of self-employment income). I was spurred on to look into the SEP IRA account to reduce my tax liability after reading two posts on Blueprint for Financial Prosperity. Thanks, Jim!

Scroll down to read 6 comments on “TIAA-CREF Funded My SEP IRA!.”

Related Entries on Consumerism Commentary


6 Comments on “TIAA-CREF Funded My SEP IRA!.” To add your own comment, scroll down.

  1. Comment #1 by jim (reply)
    April 28th, 2006 at 11:06 am

    You’re very welcome. :)

  2. Trackback #2 by Canadian Capitalist » Carnival of Investing # 20 (reply)
    May 1st, 2006 at 7:44 am

Leave a Comment





Enter your comments below. Please note: Use of a non-personal web site or blog in the field below and/or comments that are off-topic, personal attacks, or support requests will likely be removed at my discretion.

Copyright of comments belongs to the comment author, but I reserve the right to edit comments for formatting or content.

Add a photo or icon to your comment by creating an account on Gravatar.



Welcome to Consumerism Commentary

Consumerism Commentary is a blog for every human who wishes to make the most of his or her life, from a financial perspective. Read more about Consumerism Commentary.

Contributors

Flexo, chief editor | Sasha | Smithee

Subscribe via E-mail

Recent Comments

nickel: I guess we’re at #2 on the list. on Maimonides’ 8 Levels of Charity

Kirk: Pretty solid portfolio and good choices. I would add a REIT fund, specifically the Vanguard REIT ETF, and a commodity ETF. Google Roger Gibson in the... on The Only 7 Investments You Need

nerb70: The whole taxact stuff, goes like this. If you had the fee’s taken out of your refund, expect a check in the mail.... on Didn’t Receive Your Economic Stimulus Payment Yet?

Jim: getting on soapbox… I can’t agree with Jonathan’s post #3 more. Charity should not be an after thought or a ‘whatever you can... on Maimonides’ 8 Levels of Charity

marie: My dad recieved his letter from the IRS that he would be recieving his check. He draws Disabled Social Security. He filed married... on 1,500 Economic Stimulus Payments Sent To Wrong Accounts

Best of Consumerism Commentary

Following Your Bliss: Good Advice or Bunk?

Unintended Consequences and Money

The New Emergency Fund: Five Components to an Emergency Plan

Paying off Debt: 6 Steps to Building a Better Snowball

10 Steps to Break the Credit Card Habit

Your Job as Your Identity: Not for Me, Thanks

5 Signs You are About to Lose Your Job

Economic Stimulus Tax Rebate Calculator

50 Tips to Help Establish Your Emergency Fund

79 Cards Offering 0% APR on Purchases, Balance Transfers, or Cash Advances

Cash vs. Credit Card: Gas Stations Charging Different Prices

Recent Articles

If You Had Filing Fees Deducted From Your Tax Refund, You Will Receive a Paper Check Rebate

The Only 7 Investments You Need

1,500 Economic Stimulus Payments Sent To Wrong Accounts

Maimonides’ 8 Levels of Charity

Early Morning Blog Roundup: Suckers, Micropayments, and Obsession

Gas Stations’ Profits Hurting: Should Congress Intervene?

Privacy Policy for Consumerism Commentary

Chrysler’s $2.99 Gas Guarantee: A Bad Deal

Sallie Mae Reporting Incorrectly to Equifax, Dropping FICO Scores

Using Fame to Promote an Issue: A Reponsibility or Uncouth?

Popular on pfblogs.org

Auctioning Debt to the Highest Bidder? (Master Your Card)

Everything comes out today! (The American Dollar)

The best article ever (Well-Heeled And Everything)

Success Stories: From $11 an Hour to $3,000,000 (Can I Get Rich On A Salary)

Microsoft Wireless Mouse Giveaway (Christian Personal Finance)

How Much Could You Have if Social Security Was YOUR Money? (AllFinancialMatters)

12 Ways To Be Financially Boring (Save and Conquer)

The Monthly Grind: Sixteen Hardcore Tactics for Minimizing Your Monthly Bills (The Simple Dollar)

Make Paying Down Debt a Priority (Being Frugal)

On Lunches (This Writer's Wallet)

Powered by pfblogs.org

Disclaimer

The authors of Consumerism Commentary are not professional financial advisers and no text within this website should be considered financial advice. Any individual who makes financial decisions based solely on the information contained within does so at his or her own risk. Always consult a financial professional.

About Advertising



Carnival of Personal Finance