Retirement savings and plans are often the biggest challenge for people wanting to leave their “safe” corporate jobs. retirement savings is never a fun or sexy topic BUT I continue to invite you to think about how you use your cash now and how you can minimize taxes and plan for your future. On our website, under Resources, you will find a comparison of the different types of retirement plans and their pros and cons.
Setting up and maintaining a small business or self employed retirement plan is relatively easy. Contributions set aside for retirement can be deducted and only become taxable when you retire and withdraw the funds. While the funds sit in the plan, they grow tax free so no tax on the ineterst and dividens being earned. Some plans also allow you to withdraw the funds for emergencies, or to buy your first home or even to borrow against. Can you see all the inetersting tax planning strategies here? Yes! Please make sure that you discuss deductible retirement plans with your tax advisor.
Another benefit to creating and contributing to a retirement plan is the Retirement Savings Contribution Credit – a tax credit, one of my favorite words, “tax credit”. Depending on your income levels, you may get a credit of up to 50% of your retirement contributions. Nice! We do like tax credits.
Retirement seem to far away? More interested in tax deductions for your business today? Then join us to meet THOMAS on September 15th. We will discuss my 5 favorite tax deductions which are often misunderstood or overlooked. Travel/Home Office/Meals/Auto/Supplies.