Biz Side
Basic tips for retirement n
Start now to plan to take advantage of every legal way to lower your tax bite as you prepare for retirement. Numerous government benefits can help you.
U.S. Department of Labor form 5500 Series. A certified public accountant can advise you on record keeping and submitting form 5500, left, for your 401(k), which is required by the IRS and the Labor Department. Go to: www.dol.gov/ ebsa/5500main. html.
Editor’s note: Information in this article is provided for educational and reference purposes only. It is not intended to provide specific advice or individual recommendations. Consult an accountant or tax advisor for advice regarding your particular situation.
understand that retirement savings plans have the double benefit of reducing today’s tax load, thus effectively increasing today’s income, while helping to build that all-important retirement nest egg.
By William J. Lynott
For every dollar that you put into your retirement plan, you save 28 cents or more in today’s taxes, and every dollar in that plan is protected from Uncle Sam until you retire and start withdrawals. Thus, you’ll want to contribute the maximum amount possible to your existing retirement plan or get to work now to establish one. If you’re a sole proprietor with no employees, setting up a retirement plan couldn’t be easier. Just ask any broker or mutual fund company to set you up with an individual 401(k). It’s that easy. In this situation, the best plan for you might be what is known as a solo 401(k).
Whether you’re just getting started in your business or if you’ve been around for years, you can’t afford to let your hard-earned dollars get eaten up at tax time. It’s tough enough to earn a decent income these days, and it can be even harder to keep what you earn. That’s why it’s important to take advantage of every legitimate way to minimize your tax bite. Worrying about your retirement today when business demands on you are so high may not be your top priority, but 60
Contributing the max helps you most
Fabricator n September / October 2012