IRAs. You can contribute up to $5,500 this year and if you are over 50 you can use the catch-up provision and put away an additional $1,000.
Let’s say your net income for this year is $30,000. You can shelter up to $5,500 of it by contributing to an IRA.
SEP-IRAs: Simplified Employee Pension Plan uses an IRA format. You can contribute up to 25% of compensation up to $52,000 for this year. Now if you choose a SEP-IRA and have employees you will need to contribute to their SEP-IRAs also.
Let’s use $30,000 again and you would be able to contribute $7,500 to your SEP. Easy to set up with a mutual fund company or a brokerage company. Contributions can be made with your tax return next year.
SIMPLE-IRAs: Savings Incentive Match Plan for Employees was designed for small businesses with under 100 employees "
Click here to read the whole article
It's a well-known fact that America's small business owners are movers Focus your business on your areas of expertise and strength, and hireRead more
When the economic crisis hit, small businesses in Britain and United States banded together to survive and compete. But here in Australia, whyRead more
Do you want to know more about how using the cloud can improve your business operations? A panel of experts will be here to help on 5 JuneRead more