Ways to Address Tax Savings Through Retirement Plans

Tips for Business Owners

There is a lot of volatility in the markets right now and you may be asking, “What can I do to take advantage?”

There are several ways, as a business owner, that you may reduce your taxable income. One of these strategies is through the implementation of retirement plans. Below you’ll find a few options.

• 401(k) – Accelerate your contribution to your 401(k) by going online and increasing the percentage of your paycheck that is going into the 401(k). For example, if you are contributing 3%, go to the highest percentage you can handle. This may mean that you will get a lower paycheck, so make sure your cash flow can handle it. Please consult your tax advisor or financial planner to discuss.
• Self-Employed Pension (SEP) Contributions – Make your SEP contribution now to take advantage of the market volatility.
• IRA/Roth IRA Contributions – You can still make your 2019 contribution until April 1, 2020! And if you would like, you can also make your 2020 contribution.
• Defined Benefit (DB) Contributions – Talk with your third party administrator (TPA) to see if the calculation for 2019 has been completed. If not, call and ask them to accelerate the process.

These are just a few of the ideas, and there may be others. Consult your financial advisor and tax professional to have these discussions.