As the year comes to an end, business owners and individuals seek opportunities to maximize their savings through year-end tax planning. A Qualified Retirement Plan can be a great tool for small business owners who want to save on taxes and grow their personal wealth at the same time.
An IRA is an account set up with a financial institution that allows an individual to save for retirement, with tax-free growth or on a tax-deferred basis.
With a traditional IRA, you get a tax deduction when you contribute to the account and will pay taxes when you withdraw the money. Most people find themselves in a lower tax bracket once they retire. Therefore, the funds will be taxed at a lower rate when withdrawn.
- There are no income limitations when not covered by a retirement plan at work.
In a Roth IRA, you don't get the deduction when you contribute, but the money grows tax-free. The income from the growth is not taxable.
For 2023 The IRA contribution limit is $6,500; for 2024, the limit has been increased to $7,000.
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This webinar below is from or archives. It was presented by Jacob I. Oberlander, CPA, and Chesky Deutsch from CSD Financial in which we covered all the basic information of a company and individual retirement plans.
Some of the topics discussed;
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What are the tax benefits of a Retirement Plan?
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What are the different versions of Retirement Plans?
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Am I too young to consider a Retirement Plan?
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Where can I invest my money within a Retirement Plan?
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Is my money locked until retirement?
