The end of tax season is near! If you have not done so already, your last day to file taxes is April 18. Small business owners are responsible for funding their own retirement plans to supplement their Social Security benefits. Being retired or partially retired does not exactly equate to a lack of tax-deductible contributions to retirement plans such as IRAs. People over 50 have higher contribution limits for traditional IRAs, Roth IRAs, and 401(k)s.
Fortunately, there are tax implications that lend a helping hand to business owners making contributions.
Percentage deductible: 100%
Eligibility: Retirement accounts that comply with IRS regulations and are deemed “tax-qualified.”
Example deductions: Contributions made to the following types of tax-qualified retirement plans:
SIMPLE IRA
Keogh plan
Solo 401(k)