What’s the recommendation if you have an S Corp

[Edmund Fontana]

What are people recommending if you have an S Corp to minimize tax burden and continue to invest in real-estate.

SEP IRA

Roth IRA

401K

Self directed IRA / 401k

[Ashish Acharya]

Originally posted by @Edmund Fontana:

What are people recommending if you have an S Corp to minimize tax burden and continue to invest in real-estate.

SEP IRA

Roth IRA

401K

Self directed IRA / 401k

You don't need S-corp for a Roth IRA. Anyone can open them and make contribution. Contribution to Roth IRA are not tax deductible unlike Traditional IRA.

Roth IRA also has AGI limitation.

SEP and 401k are both possibilities for S-Corp to reduce tax burden. 

Max deferral under 401k for 2018 was 18500 plus 6000 in 50 or older. People generally attach 401k with profit sharing plan to get deferral up to 55k. 401k alone is only 18500. 

SEP, you can contribute up to 55k if your earned income is high enough. 

There goes a detail analysis to determine what is best for you. If you have not established the 401k plan for 2018, you cannot do it now. 

Sep can be established and contributed up to extension deadline. 

As you can see, you need to talk to professional to determine what is best for you.