YEAR END TAX TIPS: PART II

SMALL BUSINESS OWNERS AND PROFESSIONALS

Time is growing short to strategize and execute retirement savings plans for 2013. As you know, CPA Accounting and Tax Solutions continually blogs about the importance of retirement savings. We often see tax clients approaching retirement age with little or no savings. There are tax advantaged retirement savings plans available to you. These small business retirement plans are more complicated than personal Traditional IRA or ROTH IRA’s, and it is wise to seek professional help in reviewing and selecting the best option for you and your company. We partner with some of the best Certified Financial Planners in Southwest Florida. Together we can analyze your company’s financials and help you select the most tax effective strategy.

Remember also, that CPA Accounting and Tax Solutions offers free consultations on your Accounting, Payroll, and Tax Preparation needs. We will analyze prior year tax returns as well. We often discover overlooked tax deductions, which can be recovered through amended tax returns. Please remember that we can only offer these free consultations before the beginning of tax season. Feel free to call us at 239-596-6050.

Following is some very basic information on the available Retirement Plans. If you email me at JOE.DANIELE@CPAACCTAX.COM, I will email you a very comprehensive brochure, describing these retirement plans in great detail. If you have neglected saving for retirement, these  plans offer much higher pretax saving limits than Personal IRA’s and can get you on track toward building a comfortable retirement fund. The two plans are the SIMPLE IRA, and the 401K.

The SIMPLE IRA is easy to set up and administer and offers $12,000 in pretax savings, plus $2,500 more if you are age 50 and older.

The 401K offers up to 25% of compensation in pre tax savings, maxing at $50,000, with a catch up of $5,500 if you are 50 and older.

As you can see, these plans offer powerful retirement savings vehicles. We will cover each of the plans in more detail in our next two blog posts.

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