For many people, there is no reason explaining what an IRA account is. We all know it is an individual retirement plan that can be either Traditional or Roth with a maximum contribution limit of $5,500, or $6,500 if 50 or over, for 2016. But in addition to a Traditional or Roth IRA, many of you have probably heard of a so-called Self-Directed IRA (SD IRA). Let’s take a detailed look into a SD IRA and see if it is advantageous to open one.
As a small business owner you, like no other, understand the importance of having a retirement plan for your company. An attractive retirement plan helps your business recruit and retain employees, while allowing you to participate in their retirement future. Aside from that, having a retirement plan allows you to deduct the contributions you make on your business’s tax return. That alone is a very good incentive to have a retirement plan. [Read more…] about A SEP IRA As An Alternative to 401(k)
For many years the only way to save for retirement within a 401(k) plan was by contributing pre-tax dollars. Depending on your contribution rate, every pay period your employer deducts a predetermined amount from your paycheck and transfers it directly to your 401(k) account. Since all contributions are made with before-tax dollars, you don’t have to pay any taxes on the contributions and basically, minimize your taxable income.