Tax Benefits of Self-Employed Retirement Plans
Self-employed retirement plans, such as the profit sharing and profit sharing/401(k) plans offered by the Program, are particularly valuable options for reducing your tax bill now and accumulating tax-deferred retirement savings for later. In 2014, you could feasibly contribute 20% of your net self employment income (based on a maximum net income of $260,000 in 2014) plus a $17,500 elective salary deferral to a profit sharing/401(k) plan for a total maximum contribution of $52,000*.
Are you maximizing your ability to contribute? Do you need assistance calculating your contributions? This can be complicated, and the Program can help. Reach out to us at firstname.lastname@example.org and we will calculate your maximum contribution.
*If you’re 50 or older in 2014, you can also contribute an additional $5,500 in catch-up contributions to a profit sharing/401(k) plan for a total of $57,500.