Registered User Login

Username
Password

Forgot your password?
Haven't Registered?




 
My Zimbio

Retirements Plans for Self-Employed Part 2
Equine Accounting
Wednesday 20th of April 2011 11:00 AM

Retirement Plans for Self-Employed Part 2

Last time we covered a couple of the options (401(k)s and IRAs) that your equine business should think about - retirement savings. All small business retirement plans can help you save a significant amount of money toward your retirement and provide tax advantages at the same time.  Best course of action is to know your options.

SIMPLE IRA

A SIMPLE plan is technically also an IRA but it is designed specifically for small businesses with 100 employees or less, and many equine businesses fall into this category.  The plan is funded by employer contributions and can also be funded by elective employee salary deferral.  Employer can make matching contributions between 1% and 3%. Maximum 2011 contribution is $11,500 with a catch-up contribution for those over 50 of an additional $2,500.

Advantages: Great way for you as the small business owner to save for your own retirement while also providing a way for your employees to save for their retirement as well. It’s easy to establish with low administrative costs.

Disadvantages: Relatively low contribution limits

SEP IRA

SEP stands for Simplified Employee Pension and is also a type of IRA like the SIMPLE. SEP plans are specifically designed for self-employed people and small business owners who typically employ fewer than 25 employees, again many equine businesses fall into this category. Maximum 2011 contribution is 25% of income or $49,000

Advantages: Contributions requirements are very flexible, with contributions being 100% tax deductible which grow tax deferred. Substantial contributions are allowed.

Disadvantages: No additional catch-up contribution allowed. No employee contributions, but employer must establish a separate SEP for each eligible employee with immediate vesting.

There is no “one” retirement plan that is best for everyone that is self employed. How much money your business makes, how many employees you have, how much money you would like to contribute to a plan, and many other factors will help you to determine which option is best for you. The important thing is to start saving and take advantage of tax savings right away.


Just Started an Equine Business? Think About Retirement!
Equine Accounting
Wednesday 6th of April 2011 11:39 AM

Part 1

When you are first striking out on your own and opening the equine business of your dreams, the last thing you might think about is retiring. Without an HR or Payroll department encouraging you to contribute to a plan, it’s easy to let that fall by the wayside. It’s more important than ever when you are self-employed to establish a savings plan, so you will be secure in retirement as well as take advantage of an important element of tax savings. In this two-part series, we will cover some plans available to the self-employed.

401(k)

Self employed individuals can set up a solo 401(k) for just themselves, or if they have employees then they can set up a traditional 401(k) plan to cover themselves and their employees. Maximum 2011 contribution is $16,500 with a catch-up contribution for those over 50 of an additional $5,500.

Advantages: Offering a 401(k) plan is great way to boost employee retention since they are so well known. Contributions are an above the line deduction where money grows tax-deferred.

Disadvantages: Administrative costs are much higher than other options like IRAs and SIMPLE IRAs.

IRA

There are two main types of IRAs: traditional and Roth. Traditional IRA contributions are deductible in the year the contribution is made as an above the line deduction while the money grows tax deferred.  Roth IRA contributions are not tax deductible, but money grows tax free within the account with no taxes due when distributions are made. Maximum 2011 contribution is $5,000 for both traditional and Roth for those under 50 and $6,000 for those 50+ years of age.

Advantages: Easy to establish, enjoy tax deductible contributions or tax deferred earnings depending on the type you choose.

Disadvantages: Not a plan you can offer your employees as a group with contribution matching, you can only make contributions to your own plan.

Next time we will cover more retirement plans such as SIMPLE IRAs and SEP IRAs available for the self-employed.

 


Stay up to date on when I blog! Subscribe to my feed, and be the first to know when I update!

RSS Feed

This site contains information on horses for sale, equine for sale, horses for lease, trucks and equipment for sale, trailers for sale, livestock real estate for sale, and horse real estate for lease. 
Another feature of this website is that there are classified listings for horse real estate for sale, horse accessories for sale, dogs for sale, stallions for sale, stallions for lease. 
Further more this website has information on classified ads horse site, buying a horse, buying a truck, buying a trailer, buying livestock real estate, buying horse real estate, buying horse accessories, buying stallions, buying classified ad space, classified ad space, miscellaneous tack and equipment, buying miscellaneous tack and equipment, placing a classified ad online, finding horses online. 
If you are looking for horse equipment online, buying horses online, buying horse equipment online, advertising your horse, free text ads, free horse ads, low price horse ads, low price photo ads, low price photos ads for horses, buying horses online, buying ads online, horse ads online make sure and visit our website. 
This webpage has horse classifieds online, online classified ads and is a horse marketplace, one place for all your horse needs and we specialize in easy internet sales, search horses for sale. 

This website is your equine source, your only source for equine related items, your only equine source and the source for equine related products. 
Use this website to view your source for horses, your only source for horses, your horse source. 
Enjoy this website with free text links, free text link exchange. free horse link exchange, free horse text ad exchange, equine classified site, equine classified ad site, horse classified ads, horse selling, selling horses, selling horse products, finding horses online, selling horses online.
List your stallions at stud, stallion standing, stallion at stud showcase, or see our stallion showcase.
horsemojo