Do you know how to choose the best small business retirement plans account? The best plan for your company is dependent on the amount you want to save or how much you need to lower your tax bill. Owners of businesses often are so busy running the business the very last thing they want to think about is setting up a retirement account or saving money. The right plan (and contributions) can set you up for more financial success and save you a lot on taxes.
Do not currently have one
Speaking about retirement plans are a real pain in the booty, so 34 percent of entrepreneurs do not currently have any retirement savings plan at all, according to a new survey done by Manta an online community of small businesses.
Whether you are a great saver or only just starting, it is vital to find a retirement account for your business. Even if you love what you do, and never plan to retire, a retirement plan will enable to help you slash your tax bill today. At the very least, you can plan for financial independence – the day when working for you becomes an option. Or maybe you will have a little more ease about taking on the ideal clients.
You need to strive to save between 10% and 20% of your income towards retirement. Now, that may sound impossible to do but the important thing is to get started as quickly as possible.
If you are saving less than $5500 each year you can keep things simple and only use a Traditional IRA or a ROTH IRA.
If you can save in this range, you could consider a SEP IRA or Solo 401k plan. Both plans will allow you to stash more money in a tax favored manor than a ROTH or Traditional IRA.