There’s still time for 2016 tax savings…but it is running out!!

December 19, 2016 | posted in: Blog | by
With proper 401(k) retirement plan design techniques, clients can reduce taxes, improve owner benefits, and lower employee costs:

 

  • $53,000 individual deduction limits for 401(k)/profit sharing plans.  If 50 or older, up to $59,000 can be funded into 401(k).
  • Contributions of up to $300,000 for small business owners in Defined Benefit plans (depends on age and service).
  • IRS tax credit of $500 per year for the first 3 years of the plan for installation and administrative costs if your client has employees.
  • Uni-K plan to maximize deductions for self-employed, owner-only or owner-spouse business owners with low W-2 wages (i.e. deduct $28,000 with only $40,000 in wages; if 50 or older, deduction increases to $34,000.

DON’T DELAY:  Plans must be adopted by December 31, 2016 (but plans don’t have to be funded until 2017).