Cartoon of man being shocked at the time
There’s still time for 2016 tax savings…but it is running out!!
December 19, 2016 | posted in: Blog | by Frye Retirement
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).
