Submitted by Susan Powers on May 1, 2017
There are many rewards to running your own successful business. The flexibility to customize a retirement plan tailored to your goals is just one of those rewards. You need a plan that works well today - and in the future as your business grows. Whether you’re a sole proprietor, LLC or S Corp, there’s an option for you.
All of the options we lay out reduce your current taxes while your assets grow tax-deferred. You’ll begin paying taxes when you take money out later in retirement, but only on the actual dollars withdrawn.
Which best describes you or how much you can save?
Submitted by Susan Powers on November 15th, 2016
According to the IRS, cash balance plans are the fastest growing type of retirement plan in the United States.
What makes them attractive?
If you are a business owner, you can put up to $53K (or $59K if you are over age 50) each year into a 401(k). If business owners are interested in saving more than their 401(k) limit, cash balance plans may let them save up to an additional $237K on a tax-deferred basis each year.
The December 31st deadline to establish a cash balance plan is quickly approaching but you still have time if they are attractive for you.