Have a Tax Question? Ask a Tax Expert
HI. My name is ***** ***** I will be happy to help you.
You have couple of options. If your employer offer 401K or other retirement plan, you can contribute to it in addition to your IRA. What type of 1099 do you have? 1099Misc? In which box is the income reported?
Sorry, I realized you are talking about 2015 so you don't have 1099 yet. Are you self-employed or independent contractor? Or where is the 1099 from?
Ok. It looks like it will be 1099Misc with box 7, which will be reported on Schedule C along with your other expenses. As long as you have enough earned income, which it looks like you have, you can max up your IRA (6,500 for 2015) and you can also research some retirement plans for self-employed individuals. The best place to start would be with your IRA administrator. Organizations that offer IRA usually offer sole 401K or other retirement plans for self-employed individual.
Here are some options: https://www.irs.gov/Retirement-Plans/Retirement-Plans-for-Self-Employed-People
And here are the plans in more details: http://www.forbes.com/sites/kerryhannon/2011/04/01/the-best-retirement-plans-for-the-self-employed/3/
You will also be able deduct your Medicare and other medical insurance premiums directly as above the line deduction, which means you do not have to itemize your deduction and it the deduction is not limited by your AGI. This will also reduce your taxable income.
You can have both, IRA and 401K. Who is administering your IRA? Many plans can be opened online without having to pay fees to your advisor.
Even banks and Credit unions have tons of information online and option to do it yourself. You may have to fax or mail some signature authorizations, but if you already have an account with the financial institution, it should be relatively easy. I opened my IRA and Solo 401K with Vanguard without online without having to talk to any financial adviser. The key is to know what you want.
I understand. In few years you will be required to take minimum distributions so it doesn't make much sense to pay large fees to administer your retirement account.
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