Small business owners usually have a long list of items on their to-do lists. If contributing to your retirement plan was on your agenda this year, there may still be time to add more to your nest egg and reap the rewards on your 2015 return. You’re allowed to make contributions to an established retirement plan up until your tax filing deadline, or potentially as late as April 15 of next year (or later if you file an extension). You get two benefits: More money in the bank waiting for you when you retire and a tax deduction for 2015. These tax benefits can be especially helpful when you have a strategic tax plan in place to lower your total tax bill.
There are a number of tax-advantaged retirement plan options open to those who run their own businesses, with different choices for those who have employees and those who don’t. If you are self-employed, for example, you may qualify for retirement plan options that include the SEP (Self-Employed Pension) IRA or the individual 401(k). If you’d like to learn more, or if you have any questions about your retirement plan options, please contact our office.