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SEP plans while still working

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Bywoolybully

L1: SEP plans while still workingHi. I”ll be 50 this year and plan on retiring in 4-5 years, depending on how long I can stand the BS as work. I should have plenty of assets by then. When I retire,I want to move to Colorado, buy a nice parcel of land and build my dreamhome on it.
The problem that I have is that more than 90% of my money is in taxable accounts (IRA and 401K). The after tax portion is mostly tied up in equity of my mortgage (2/3) and rest is in investments. From forecasts it appears that I”ll have to pull out several 100,000 to cover the cost of buying and building, living expenses and a new car and that will cost me an extra 150k in taxes.
Based on my supposed maginal tax rate, every dollar I can save today will save me between 38 and 48 cents in less taxes depending on what year I retire in (the year I turn 55 avoids the 10% penalty).
The question: My wife and I have IRA”s totaling about 200K. Can I start a SEP plan on those even though I”m still working?
I don”t qualify for making contributions to them so that”s not a problem. Based on the today”s value and the interest rate, I could pull out more than 10K/year.
I”ve also considered selling my current house and moving into a smaller one and changing from my current 15 year to 30 mortgage, perhaps a balloon to lower the interest rate. The lower house payment coupled with much lower property taxes should allow me to save an additional chunk of change, perhaps another 10K/year. Is it wise to buy a house and start a new mortgage if I”m just going to sell it again in 4 or 5 years? I could sell and move into an apartment, but neither my wife or me like that idea.
Thanks for any help in advance.2004-01-25 19:46, By: woolybully, IP: [24.233.49.16]

L2: SEP plans while still working>The question: My wife and I have IRA”s totaling about 200K. Can I start a SEP plan on those even though I”m still working?
You could start one on your IRA and your wife could start one on her IRA. If you do start a SEPP, don””t make any additional contributions to the SEPP.2004-01-27 17:01, By: Gfw, IP: [172.16.1.72]

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