Retirement Plans make Great Deductions for Employers
They key to having your own business is maximizing your deductions and one of the best ways to do that is to create a retirement plan for your employees. Here’s what Amanda has to say on the topic…..Enjoy, Megan.
Amanda Han’s Keystone Korner
For the past several weeks, we have been sharing with you the nuts and bolts of retirement planning for business
es. This week, we will finish the discussion by showing you the power of these planning strategies.
As a business owner, you can generally deduct the contributions you make on behalf of your employees. This can help reduce your business and personal adjusted gross income on your tax returns. There are plans available where you could stock away close to $50,000 per year in your retirement account. This could result in significant tax savings over time. In some plans, the contributions the employees make are generally not taxed until they are withdrawn. This allows for some great potential for tax-free or tax deferred growth and is a great perk for your employees. In summary, there are tremendous amounts of opportunities relating to retirement planning as a business owner. So make sure you work with a qualified team of advisors to help you take advantage of the opportunities.
Written 2009 by Amanda Y. Han, CPA
KEYSTONE CPA, INC.
Maximizing Profits & Increasing Wealth
29. October 2009 at 1:26 am
This may be true,but if it’s the 401-k,it’s the employees,that have been screwed!
30. October 2009 at 10:04 am
401k were created for the tax advantages an employer gets, not with the employee in mind, that’s for sure.