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.
In order to start saving for their retirement, small business owners need to make a few tweaks in their business and personal lives, and be sure to set up a retirement plan that is aligned with their goals and business perspectives. Luckily, an abundance of retirement plans exclusive for small business owners provides them with a set of unique options, opportunities, and flexibility to save for their retirement that are not usually available to regular folks. [Read more…] about 12 Retirement Mistakes Every Small Business Owner Should Avoid
Without doubt, small businesses continue to play a crucial role in the economy and remain the locomotive power of innovation and growth. Small businesses account for more than 50% of nonfarm private GDP and employ 56.1 mln. (half of all private-sector workers.)
While everybody wants to be their own boss, being a small business owner has many responsibilities and enormous amount of hard work. Not only you have to paddle your own canoe, but you must also handle a lot of things, like creating a budget, business development, managing people, and never-ending meetings. [Read more…] about Small Business Retirement Plans
A Roth IRA account is an account that provides not only tax-free growth of your hard-earned savings, but allows for anytime tax- and penalty-free distributions as well (only for contributions.) In addition, a Roth IRA gives you a much more flexibility over your funds and investment options, which can improve your overall performance and speed-up the accumulation process. For instance, you can construct your portfolio the way you want, not the way your 401k plan management company wants [Read more…] about Best Roth IRA Brokers