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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 2571
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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I a 71 YEAR OLD RETIREE. I DO OWN A 7 AND 9 UNIT APARTMENT

Customer Question

I a 71 YEAR OLD RETIREE. I DO OWN A 7 AND 9 UNIT APARTMENT BUILDING. I MANAGE THE BUILDING MSELF. NO EMPLOYEES… CAN I SET UP A DEFINED BENEFIT SERVICE JUST FOR MYSELF.
Submitted: 6 months ago.
Category: Finance
Expert:  Steve replied 6 months ago.
Hi and welcome to JustAnswer - In order to have a plan, you must have self employed earned income. That earned income would be subject to self employment tax of 15.3%. Rental income is not considered to be self employment income. Even if you paid your self a management fee, which would be self employment income that income would be subject to the 15.3% self employment tax. So there would be limited benefit and real cost to reclassifying your income to make a qualified plan contribution.
Customer: replied 6 months ago.
Thanks. Please send rating