Starting a retirement plan can be costly, but the IRS does provide some form of credit to encourage owners to set up a retirement plan to help employees. You may be able to claim 50% of the ordinary and necessary expense, up to a max of $500 for the first three years, in starting a SEP, SIMPLE or qualified plan. Ordinary and necessary expenses can be used to cover set-up fees, administrative fees and employee education expenses.
File form 8881.
Low income savers should also start saving. There are tax codes that provide credits for retirement contributions. Low income savers can claim from 10% to 50% of their eligible contributions to a qualified IRA, 401(k) and certain retirement plans, up to a max of $1,000 (single) and $2,000 (married filed jointly). In 2015, the phase-out limit for single is $30,500, and $61,000 for married filed jointly.
File Form 8880
Principal of Pension Maxima Investment Advisory
Pension Maxima Investment Advisory
Services: Retirement Plans, Exit Planning, Financial Wellness Education
Our objective is to help business owners maximize retirement savings and attain positive retirement outcome. We also provide Exit Planning strategies for retiring owners and Financial Wellness Training through fun videos and interactive learning tools.
Websites: www.pensionmaxima.com, www.financialwellnesstower.com