Forming a Retirement Plan within Your Business
When creating your business entity, the question of retirement planning comes in to play as well. Young professionals don’t always think this long-term but it’s good business. This first article is a brief intro on the 4 types of plans available to business owners. The following articles will go into more detail and discussion as to the tax advantages. Thanks for stopping in and enjoy, Megan
Amanda Han’s Keystone Korner
This week we begin our series of discussions regarding the tremendous amount of opportunities in retirement planning as it relates to businesses. There are several key items to take into consideration when determining which type of retirement account is best for your business. When we talk to clients about this exact subject, there are 4 items we like to keep in mind, and those are 1) the type of plan that is best suited for your business, 2) the deadlines for creating the plans, 3) the timing rules for making contributions to the plans, and 4) the tax benefits generally available for those plans.
You and your team of advisors should work together to evaluate your situation to determine what type of plan is best for your scenario. There are SEP IRA’s, SIMPLE IRA’s, Defined Benefit Plans, and Defined Contribution Plans to name a few. Some things to keep in mind when making this decision is 1) whether you have any employees, 2) what are your goals for the business, 3) what kind of vesting requirements do you want to have, and 3) would you like to be able to borrow from the plan? Join us next week as we talk more in-depth about timelines and contribution dates for planning.
Written 2009 by Amanda Y. Han, CPA
KEYSTONE CPA, INC.
Maximizing Profits & Increasing Wealth
Fri, Oct 16, 2009
Financial Planning, Tax Tips