Corporate Retirement Plans – Peace of Mind For Small Business Owners

1. Corporate Retirement Plans – Peace of Mind For Small Business Owners Corporate retirement plans can be very elusive at the Olympia Heights of calling the shots and pulling the reins as your own boss; it might not just occur to you all through your active years if you are the make it and spend it all kind of proprietor. With this averse attitude to saving for the rainy day, you could find yourself in a miserable state of want and penury after enjoying the lavish spending of all the fortunes you made in business. If you must avoid this, you must consciously start a self-employed retirement plan. It would well worth it, after all the years of hard work put into building your business to have something substantial to fall back on. Besides, having a contribution like that can serve as security against unexpected or unforeseen downturn in business. In the event that for example, a business becomes insolvent or liquidates when a business owner’s strength and enterprising drive has diminished as a result of old age or ill health, having a lump sum saved up in a contribution fund cushions the effect of the business crisis and ensures the owner’s financial stability. Corporate retirement plans provides the luxury of options for those who will take advantage of them. If you are self-employed, you would benefit immensely from any of the following retirement schemes; the Roth IRAs, Keogh plans, solo 401(k) plans and the simplified employee pensions (SEPs or SEP-IRAs). Let’s pick on the SEP and Keogh plans here. The SEP scheme allows employees and employers to allocate a substantial percentage of their income to retirement plan funds. As much as 20 to 25% can be contributed to the fund. Convenience is given consideration in this scheme as there is no fixed percentage of income to be remitted as contribution every year in addition to the fact that the scheme is tax-differed that is there are no tax deductions from income until funds have been remitted. If you want a standard contribution every year to the retirement plan, a Keogh plan favors this as the part of profit that can be remitted for contribution is defined and constant. You can also get to enjoy the benefit of tax deferral on this scheme too once you are able to establish the plan before of the tax year. As with other sections, the income of the self-employed would determine the amount to be remitted as contribution even with the fixed percentages. However, specific administrative processes needs to be adhered to; it is required that within the first year the documentation is convention. The internal revenue service is hard on this.

2. Corporate retirement plan is a smart way for the self-employed to prudently divert huge sums that could have been remitted as taxes to yearly retirement contributions; for example, $195,000 is the limit for the fixed yearly contributions to the Keogh plans. That’s really a massive saving tact the self-employed should cue into. Articles Source: http://www.abseconbusiness.com/corporate-retirement-plans-peace-of-mind- for-small-business-owners.html