Dr. Friday Radio Show – Jun 8, 2019 - a podcast by Dr. Friday Tax & Financial Firm, Inc.

Listen to this week's episode of the Dr. Friday Show, broadcast live every Saturday at 2:00pm Central on on 99.7 WTN!
Transcription
Announcer : 00:01 No, no, no. She's not a medical doctor, but she can sure cure your tax problems or your financial woes. She's the how to girl. It's the doctor Friday show. If you have a question for doctor Friday. Call her now 737-WWTN that's 737-9986. So, here's your host financial counselor and tax consultant Doctor Friday.

Dr. Friday: 00:30 Good day. I am doctor Friday and the doctor is the house. It's been little dry out there right this second, but coming in it was raining so hopefully you guys are driving safe if you're listening. But if you want to join the show, (615) 737-9986 (615) 737-9986. I'm an enrolled agent licensed with the Internal Revenue Service to talk about taxes, money issues. Maybe you've received some love letters, maybe you're not sure what you need to be doing because you really haven't done much in the last couple of years and you're like, well, if I do something now, is the IRS just going to come knocking and take everything I own? It doesn't really quite work that way. What the IRS is really looking for guys. And you know, you can talk to many experts. The bottom line, what they want is really for you to get back in the game. You know, pay in taxes, getting yourself caught up, start paying quarterlies. You know, I'm talking to my entrepreneurs because let's be honest. We are the ones that have most likely a bigger or more important time of doing things. Entrepreneurs have a tendency to be a little bit more, you know. We want to get 100% of our money right? So that way we can deal with the situation and we have to move forward and make sure we have what we need. But if you don't pay your quarterlies, what really happens? How does it work? So if you want to join us, it looks like the phone line (615)737-9986 line up (615)737-9986. We are gonna take your calls and talk about other issues that are kind of coming up in the news. What do you do if you have a love letter? And you're not sure what's the best way to respond. I will tell you this last couple of weeks, I have been handling two separate different audits. One of the best things I can tell you, number one thing, don't represent yourself. I have more than once had to step in the middle of an audit and it never goes well. If you can start with a rep and enrolled agent, someone that actually knows what to do, what to provide, how to organize the documents. You will find that the stress on yourself is so much less than when you actually try to do it all yourself. I'm just being honest. Sometimes it can be overwhelming and you know, they're threatening that they're going to charge you this much money and how this works and you need to really know how that's going to go forward. All right, we've got Charles on the line. Let's go right to the phones. Hey Charles.

Caller: 02:52 Hi, good afternoon. Question for you. I'm 68 years old on social security and I've started a little bit as a sole proprietor. Can I contribute into a SEP? I don't have any employees but it's my understanding on a SEP I can contribute. I think it's up to $55,000 of my net?

Dr. Friday: 03:20 Well, You have to be making like $200,000. It's based on a percentage of your income, but you can defer up to 54. Are you at your full retirement age?

Caller: 03:31 I'm 68. I started drawing close to 66.

Dr. Friday: 03:34 All right. So, you can contribute to a SEP up until the age of 70 and a half at that time you have to start taking distributions are required minimum distribution unless you want to consider. Depending on how much money you're making, you may want to consider a Roth only because you can continue as long as you've got earnings to a Roth past the age. Because there's no required minimum distributions. And with the lower tax codes right now, it may be that you're not really saving that much money and you may never need this money

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