Which Retirement Plan Should I Choose? [NASE Experts]

Self Made: NASE's Blog

Blog With Us

Welcome to the Self Made. This is a blog focused primarily on the self-employed and micro-business and full of fantastic posts by not only our team of experts but by YOU!  We realize that there are many ways to help the small businesses out there which is why we invite other business minded individuals to post here and help the rest of the community as well.

Which Retirement Plan Should I Choose? [NASE Experts]

Jul 19, 2012
Posted by Keith Hall (National Tax Advisor) - 

Investing in your own future is always a good idea, but it’s even better knowing that Uncle Sam will help by making qualified retirement plan contributions tax deductible.  Congress and the IRS will actually let you pay less tax simply for investing in your own future. Only in America!

So which plan is right for you?  There are lots of options to choose from, including making a contribution to a traditional IRA, setting up a 401(k) plan for your business, and setting up a Simplified Employee Pension Plan.  Most of us can contribute up to $5,000 to a traditional IRA and get a deduction for the full $5,000.  Setting up a 401(k) plan could allow you to make even a larger contribution, but may be a bit more expensive to set up.  The Simplified Employee Pension Plan, or SEP Plan, may sound more complicated but is as easy to set up as opening a new bank account and will allow you to contribute up to 20 percent of the net earnings from your business. Further, the SEP contributions can even be made as late as the extended due date of your tax return, which gives you up to six more months to make that investment in your future and still save taxes on last year’s return.

As you can tell, the SEP Plan is my favorite, but the most important thing is that you do something.  Whichever plan makes the most sense for you, just do it.  Even if you can’t make the maximum contribution, find some way to invest something in your own future via that retirement contribution. When it's time to complete your tax return, you will be so glad you did. 

Helpful Tips for Organizing and Managing Your Business Inventory

Helpful Tips for Organizing and Managing Your Business Inventory What started as a hobby, side hustle, or microbusiness is now growing into something bigger and better. That means it’s time to get serious and start implementing systems into your business.   One important part of a small business that often gets overlooked is inventory management. Smart

Written By Ryan M (@pss-california) - Tips and Tricks

7 Profitable Craft Business Ideas for Students to Start in 2024

Are you looking for a unique way to earn some extra cash while unleashing your creative spirit? Crafting isn’t just a fun hobby; it can also be a lucrative business venture. With a bit of imagination and some entrepreneurial spirit, you can turn those skills into a profitable enterprise right from your dorm room.  Whether

Written By Karcy Noonan (@anthonylucas) - How-To Guides / Tutorials

Scent Marketing: How Small Businesses are Using Fragrance to Enhance Customer Experience

In the competitive world of small business, creating a memorable customer experience is key to standing out. One innovative strategy that has gained traction is scent marketing. By incorporating carefully chosen fragrances into their environments, small businesses can evoke emotions, create lasting memories, and even influence purchasing behavior. This article explores how small businesses are

Written By Karcy Noonan (@anthonylucas) - Customer Service Insights

Starting a Bridal Gown Business: Key Considerations and Strategies

As a business that combines elegance, romance, and celebration, the bridal gown industry appeals to those who want to pursue their entrepreneurial dreams. But breaking into this cutthroat market demands careful preparation, ingenuity, and a deep grasp of the workings of the industry. This essay examines crucial factors and practical tactics for starting and expanding

Written By Delilah (@delilah-a) - Best Practices | Tips and Tricks

Overcoming Common Challenges Faced by Online Entrepreneurs

Starting a successful online business is like starting a tug-of-war between your time and money. For early-stage entrepreneurs, you constantly have to ask yourself if you should invest your hours into learning new skills, like web design and video editing, or if you’re better off hiring experts. And then there’s the question of how you’ll

Written By Joseph Muscente (@lendingtree123) - Best Practices

Want More?


See our latest Self Made content by clicking here.  Want to see our archives, click here.

Courtesy of NASE.org
https://www.nase.org/business-help/self-made-nase-blog/self-made/2012/07/19/Which_Retirement_Plan_Should_I_Choose_NASE_Experts