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Self Employment Retirement Calculator

Self-Employment Retirement Plan Maximum Contribution

Compensation for a self-employed individual (sole proprietor or partner) is that person’s “earned income.”* The starting point to determine the individual’s earned income is the net profit amount from the Schedule C (or Schedule K-1 for a partnership). Use this calculator as a starting point to assess your potential maximum contribution amount for a Self-Employed 401(k), a SIMPLE IRA, or an SEP. *Earned Income = Net Profit – 1/2 of Self-Employment Tax – Contribution

Plan Information

This is a hypothetical example used for illustrative purposes only. This worksheet provides an estimate based on certain assumptions. It is not intended to provide specific investment advice. Distribution rules are similar for most retirement plans, including 401(k) plans, SIMPLE plans, and SEP IRAs. Distributions are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. With 401(k), SIMPLE plans, SEP IRAs, account owners generally must begin taking minimum distributions after reaching age 70½.

Estimate Your Required Minimum Distribution

Current tax law specifies that once you reach age 70½ you must begin making taxable withdrawals from traditional IRAs and many other retirement plans. These minimum distributions are calculated annually based on your age, the account balance at the end of the previous year, marital status, and spouse’s age. If you do not take the annual minimum distribution, you may be subject to a 50% penalty on your underpayment, plus ordinary income tax as the funds are withdrawn. Persons age 70½ and older may find this calculator most useful.
Dates Of Birth
Month Day Year
You
Beneficiary
Plan Information
Is your spouse the designated beneficiary?
Account balance at end of last year ($)
   
This is a hypothetical example used for illustrative purposes only. This worksheet provides an estimate of your annual required minimum distribution from a retirement account based on certain assumptions. It is not intended to provide specific investment advice. There are several other factors that can affect your actual required minimum distribution, including the type of retirement plan and whether you are retired.

 

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