Gwen operates a very successful real estate brokerage as a sole proprietorship for 2019. Her commissions from the sale of real estate was $242,000 and her expenses were 94,220 during the year. She is considering whether she should contribute to a regular IRA, a Roth IRA or establish a SEP for her business. What would be the limits/maximum amounts that could be contributed to each of these plans given this scenario for Gwen? What would be the differences in tax treatment for the three different options?

Answer rating: 100% (QA)

Gwen cannot contribute to Roth IRA as person earning less than 137000 in a year can contribute ... View the full answer