TAX BILL LOWERING YOUR
PAY YOURSELF INSTEAD OF THE IRS By Marie Poliseno
If you are like most dog professionals that I work with, you probably transitioned from being a full time employee to being self-employed. One of the many benefits of working for others is the ability to contribute to a 401K. Unfortunately, as we become our own boss, contributions to a Retirement Plan often fall to the wayside.
Y
ou’re likely aware of the benefits of saving for your own retirement, but you may not realize the positive, short–term impact on your taxes each and every year that you make a contribution to a qualified plan. It can add up. Making Retirement Plan Savings Contributions If given the opportunity, would you rather pay yourself or the IRS thousands 20
of dollars? Cash flow is a common problem for dog pros, especially when starting out, and my clients often tell me they’ll think about saving for retirement when things get rolling and start looking up. But you don’t really save money that way. You just end up giving it to the IRS. Budgeting is essential, especially when cash flow is limited. But knowing how to spend those budgeted dollars is even more important. Did you know single individuals PET BOARDING & DAYCARE
making less than $17,750 are allowed to take a credit on their taxes of up to $1,000 if they contribute to a Retirement Savings Plan? So in addition to the contribution being tax deductible (depending upon the plan), the government will pay you up to $1,000 to put something away toward your own retirement. Contributions can be made to traditional IRAs, SIMPLE plans, or SEP IRAs. Each type of plan has specific criteria and maximums for how much