Are you starting out in business?
Is your business currently generating only modest income?
Then consider opening a SIMPLE-IRA.
The SIMPLE-IRA is an excellent retirement plan that can dramatically reduce your tax bill and help you provide for a secure retirement.
Why is the SIMPLE-IRA a great choice for your business?
Because it gives you the choice to make
significant annual deduction contributions.
To find out how an SIMPLE-IRA can go to work for you, now and in the future, read my new article titled Tax Tips: Why a SIMPLE-IRA Could Be Your Best Retirement-Plan Alternative Option.
Three ways our fact-filled article can help you:
- We’ll explain some of the SIMPLE-IRA’s substantial benefits. In 2020 you can contribute up to the lesser of 100% of your self-employment income or corporate salary, or $13,500. (This is considered to be an elective deferral-contribution made to your SIMPLE-IRA. There’s a lot more to say about SIMPLE-IRAs and there’s just not enough space here to go into details. To get the whole story, take a minute and read the full article.
- You’ll learn how you can make extra “catch-up” contributions. Are you age 50 or older as of December 31, 2020? If you are, you are eligible to make an additional elective deferral-contribution of up to $3,000 (for 2020). And that’s just for starters. You’ll get all the details when you read the full article.
- We’ll explain SIMPLE-IRA pros and cons. On the “pro” side, as mentioned, a SIMPLE-IRA allows much bigger annual deductible- contributions to your account. Plus, the contributions are discretionary, so you’re always in control of how much money you sock away. On the “con” side, the SIMPLE-IRA is not the best choice if your business produces healthy annual self-employment income or a significant annual corporate salary for you. If that’s the case, plans such as a SEP, solo 401(k) plan, or defined benefit pension plan should be considered as you’ll learn when you read the full article.