A perceived disadvantage of being self-employed is the absence of an employer-sponsored retirement plan.
Did you know that as a self-employed individual you may be able to:
- Establish an Individual Retirement Plan
- Make annual contributions to the plan of up to 25% of your W-2 income to a maximum of $53,000
- Take 100% of this contribution as a direct business expense (subject to certain stipulations) and by so doing significantly reduce your tax liability
- Make this contribution up to April 15 of the following year or even later, if you applied for an extension to file, and still be able to take this deduction in the current year?
That’s getting the best of both worlds! Awesome isn’t it?
Call and let’s talk tax planning!