Retirement Planning

Retirement Planning is an important and often overlooked step for business owners. There is no government pension, no company sponsored 401(k) plan to subsidize your eventual retirement. Like everything else, it is your responsibility.

You can defer tax by investing in your own retirement plan. By saving money tax deferred you reduce your current tax bill and invest the money for your future. For most people, you will be in a lower tax bracket, paying less tax. When you take it out in retirement.

There are several different types of retirement plans you can start based on your needs. If you have employees, you are required to make a contribution for them in most cases. We can show you the after tax advantages of your available options.

Contribution Limits

IRA Contribution Limit $5,500
IRA Age 50+ catch-up contribution $1,000
SEP plan participant percentage of compensation 25%
SEP plan participant maximum dollar alocation limit $55,000
SEP minimum compensation amount $600
SIMPLE IRA employee deferral $12,500
SIMPLE IRA catch-up --- Age 50 or older $3,000
Maximum elective deferral to SIMPLE plan $12,500
403(b) TSA elective employee deferral $18,500
403(b) TSA catch-up --- Age 50 or older $6,000
403(b) TSA catch-up --- 15 or more years of service with current employer $3,000
Defined contribution maximum employer percentage deduction limit (of eligible payroll) 25%
Defined contribution plan annual addition limit $55,000
Maximum elective deferral to 401(k), 403(b) or 457 $18,500
401(k) Age 50+ catch-up contribution $6,000
Annual Includable compensation limit $265,000
Highly compensated employee compensation limit $120,000
Annual retirement benefit under defined benefit plan (not to exceed 100% of compensation) $210,000
Phase-out range for deductible contributions to traditional IRAS
Married Filing Jointly
Both Spouses as participants in Qualified Plan $101,000-$121,000
One Spouse as particapants in Qualified Plan $189,000-$199,000
Single/Head of Household $63,000-$73,000
Phase-out range for contributions to Roth IRAs
Married Filing Jointly $189,000-$199,000
Single/Head of Household $120,000-$135,000
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