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Discussion Starter #1
Ok so, first I need a 401K explained to me, I kinda know, but I need to be for sure.....

and then i was wondering ...
can I have one if Im self employed? because I am going to be a real estate agent through century 21....can I still have one though?
or do I want a ROTH IRA?
but what is a ROTH IRA!!!!!????
I NEED HELP LADIES!
 

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I think you need to go the library to check out a few personal finance books but here is some basic info (I am not an expert by any means).

If you are self-employed, you can get a SEP IRA and it actually allows you to put in a greater amount of $ than a 401(k). That's all I know about that as I am not self-employed and don't know anyone else that is. Are you a contractor or an actual employee of Century 21? If you are an actual employee, you wouldn't qualify for a SEP IRA as far as I know.

A Roth IRA is an "Individual Retirement Account" where the $ goes in AFTER taxes (so it is taxed first so you don't get any kind of deduction - but when you take it out it comes out tax free and is especially good if you think your tax rate is going to be higher when you need to take the $ out). The limit to put in $ is $4000 this year (with an extra amount allotted for catch-up contributions if you are over 50). You can also take all contributions out of the ROTH without penalty. Earnings (interest) taken out before retirement age would have a 10% penalty fee I believe.

Hope that helps a little.
 
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