If you’re a small business owner, chances are, you recently completed your tax filing.
So, how to save money on taxes next year is probably top of mind.
It’s part of the general business credit, and if you can’t use it in the current year, you can carry it backward or forward.
An important caveat to note is that if you’re claiming the credit for certain plan expenses, you can’t deduct those same expenses.
These are often called Solo 401k or Individual(k) plans.
A number of vendors are beginning to market specific plans to meet this need. Click here to calculate how much you can contribute to a Solo 401k in comparison to a SEP or SIMPLE plan which have different limits.
Employer Retirement Plans Comparison Chart for Small Businesses - Summary: This chart provides a comparison of the features and benefits that apply to retirement plans that can be sponsored/adopted by small business owners.
Focus is on the areas that are important to the business owner to ensure that the plan that is chosen is the plan that is most suitable for the business.
SIMPLE 401k: Here's How This Small Business Retirement Plan Works - Abstract: Although the jargon might make individuals reluctant to explore their options for retirement savings plans, it could hurt them in the long run; many of these plans give great tax incentives (and sometimes free money! For individuals working at small businesses, a SIMPLE 401k could be a great tool to help save for retirement.
How Small Business Owners Overvalue 401k Plan Tax Deferral - Abstract: The allure of starting a small business employer retirement plan is easy to understand.