Planning for Retirement: Small Business Taxes

In the process of doing small business taxes, there are four main types of retirements plans predominantly used by employers and employees to build up a fund for employees upon retirement. These are 401(k) plans, 403 (b) plans (annuity), IRA’s and Roth IRA’s. The money to fund these plans is contributed through the payroll of an employee. Employees choose the amount they wish to contribute, within the permissible amounts for each plan, and employers may also contribute as a benefit for the employee. Each type of plan has particular regulations as far as how much can be contributed annually, how it is deducted, how it is taxed for small business taxes and when it can be withdrawn. The money in these funds is generally protected from creditors. Please contact us for more information about planning for retirement and small business taxes.