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The Benefits To Your
Business ......... Qualified Plans = Tax Savings
Year-end will be here before you know it. If you keep your business
records on a calendar year basis, now's the time to start looking for ways to minimize
your business's income taxes.
A qualified retirement plan is an effective way to reduce current tax liability. A
qualified plan may offer you, your business and your employees these tax benefits:
 | Employer contributions are tax-deductible to your business. |
| Contributions aren't included in employees' current incomes. They are taxed when they're distributed - generally at retirement when income tax brackets are often lower. |
| Earnings on contributions accumulate tax-deferred. |
| Annual administrative expenses paid separately by your business are tax-deductible. |
To gain the benefits of a qualified retirement plan for the next tax year, start
planning now. Generally, the structure of your business determines when you must adopt and
fund your plan:
Sole Proprietorship or Partnership - Establish and sign your plan by December 31 and make contributions by your tax-filing deadline, plus extensions (normally April 15).
Corporation - Establish and sign your plan by your fiscal or plan year-end and make contributions by your tax-filing deadline with extensions
If you want to reduce the amount of taxes your business must pay, now's the time to think about implementing a qualified retirement plan. By doing so, you create valuable savings and lasting benefits for yourself, your business and your employees.
Other Benefits
Employee Retirement Plans
Benefit Your Business
As a small-business owner, you're keenly aware of how taxes affect your company. They eat
up dollars needed for your company's expansion and operating expenses. An employee
retirement plan is a great way to lessen your tax toll. You may deduct the contribution
you make to the program while providing valuable benefits to your employees.
One of the most attractive plans for you and your employees is a qualified retirement
plan. Qualified plans offer a way to lower company taxes and build employee savings for
retirement. Specifically, a qualified retirement plan offers:
| Tax-deductible contributions. Plan contributions for you and your employees are deductible to your business as an ordinary business expense. |
| Tax advantaged. Contributions are not taxed until distributed (typically at retirement). |
| Tax deferral. Employees accumulate contributions and earnings on those contributions without paying taxes on them each year. This allows retirement savings to grow more quickly than through conventional savings programs. |
These three advantages combine to provide significant tax savings. When you incorporate a qualified retirement plan into your employee benefit program, you, your business and your employees benefit.
There are many types of Qualified Retirement Plans that can be custom designed to suit your specific business needs. For more information on specific plan types please click here---->
