If you are self employed, is their a way to invest pre tax dollars?

[greenmimama]

Title says it all, We would like to start a new bushiness, but still keep investing for our future. I was hoping we could glean from your wisdom.

Thank you.

[MissStache]

I was just thinking about the same question.  Hope someone has some good advice!

[MissStache]

Wow, that is an amazingly helpful thread!  Thanks so much, Knaak!

[MayDay]

Related question (maybe I should start my own thread, but i feel like this is such a simple thing that it doesn't deserve it):  as a SAHM what can I do separately from my husband's 401k with the goal of reducing taxable income?

So far we have been maxing my Roth.  Looks like I could switch that to a regular IRA so that it is tax deductible.  Thats only 5K a year (not a concern now as we aren't maxing his 401K yet, but hope to get there soon). 

Looks like I can't do an individual 401K unless I am working PT.  I do work PT but it is under the table (I do occasional yard work for little old ladies).  I could report the income and then put it all in a 401K so I still wouldn't pay taxes, but it doesn't seem worth the hassle for a few hundred bucks a year. 

Am I missing anything?

[electriceagle]

Pre-tax savings for the self-employed are better than those for the externally employed.

If you don't mind the paperwork, I believe that the Solo 401k may allow you to shield up to ~50k from taxes per year.

[greenmimama]

Thank you all, I knew you guys would know the answer.

Well we won't need to shelter 50k, but hey, you never know :)

[Catbert]

MayDay - Really nothing but traditional IRA is practical in your situation.  If you declared the "income" on your taxes then you'd pay SS and Medicare taxes on it (~15%), plus income tax.