Retirement Plan Consultants For You & Your Business
Retirement plan consultants can create a plan with a fantastic tax deduction for you.
It can reduce your taxable income so you get a tax deduction. And it also puts money in your and your employee’s retirement savings. That’s a double whammy!
You’re going to retire someday, so you’re going to want to be doing that. And retirement plan consultants can help. Every business should consider putting some of those funds away into a retirement plan. So what type is best, or what types of options are available?
It depends on a lot of different things. The type of business entity that you are, and the number of funds that you have in the business. Those are key considerations. But in general, most people are going to have the options for these types of things:
- SEP IRA
- A simple IRA
- Both the traditional and Roth IRAs end up at the high-end user-defined benefit plan
Traditional or Roth IRA
At the lower levels, every business can put up to say $6,000 a year, into either a traditional or a Roth IRA. That’s something good, something that you can save on your own.
Even without a company, you can do those things because you can say that on your own as an individual.
SEP IRAs and 401ks
The next level up, are the SEP IRAs and the 401K’s. The simple IRAs in those types of retirement plans can get you up to $56,000 into the retirement savings plan. That’s pretty healthy. So you get a tax deduction for that while saving that money.
On the high end, if your business can afford it, you can come up with a defined benefit plan. You can get over $250,000 a year put in those types of retirement plans.
So very lucrative but again, you have to have the cash flow to afford to put that much money in. It’s something that you should consider. It’s all deductible, and that’s something that’s important from a business perspective.
Benefits of Retirement Plan Consultants
As mentioned earlier, you’re saving for retirement while you get a business deduction. So you get a tax credit because it is a deductible business expense. Also, there are some avenues depending on the type of plan.
If you set up a 401k plan, there is more tax credit that you can get. Apart from being tax-deductible, you also get money from the government. It’s another double whammy. But with all that, the most important consideration is time in the plan.
The longer you’re able to save, the more benefit you’re gonna have. it’s because of the compounding of interest. Your gains on interest, and on the gains over the years. So if you’re saving now, when you’re early in your career, it’s much more powerful than waiting at the end of your career. If you’re saving for 30 or 40 years, the compounding works magic on your retirement balances.
You can’t catch up if you try to do it all at the end. Even if you put in a lot of money, you can’t catch up to slow and steady winning the race. The tortoise and the hare type philosophy. The tortoise is going beat him if he starts early enough. So, as retirement plan consultants, we encourage you to start now by putting money away in your pre-retirement.