The deadline for turbo charging your tax deduction for next year is quickly approaching. Small businesses with existing SIMPLE IRA accounts have until November 1st to notify their employees of changes for the new year. IRS rules prohibit small businesses from having a SIMPLE IRA and a 401k in the same tax year, so if you want to increase your tax benefit for next year, now is the time to act.
Although SIMPLE IRA’s have increased their contribution limits recently, they’re still limited to only $12,500 (2017) per employee plus a 3% employer match. This means the most efficient contribution for a business owner is only $12,875. Compare that with a properly designed 401k Plan boosts than number to $53,000! Many business owners see as much as 90% of their contributions go to their accounts. What does that mean? After your after tax cost to you is only 10%. Can’t beat that!
Our plan administration is a flat $1,250 per year, with no hidden fees. Call us today for a free plan illustration to see how much you could be saving. But hurry, the clock is ticking!