Self-employed? Give your future self a raise and save up to $20,988 in taxes today

A Simplified Employee Pension (SEP) is a great vehicle for self-employed solo professionals to save for retirement. A SEP lets you bank up to 25% of your net income, up to a max of $53,000 for 2016, and $54,000 for 2017, in your own individual retirement account.  These plans are easy to set up at a bank or with your investment advisor. They can be set up as late as the due date of your return, including extensions.  And they have lower start-up and operating expenses than most other plans. The higher contribution limit gets you to your retirement goals sooner.

Best of all, the annual contribution is deductible, so you save taxes today.  A $53,000 contribution could shave as much as $20,988 off your Federal tax bill. For an S-corporation or a partnership, this is a deduction at the company level, while a sole proprietor deducts this on their personal return. The contribution is discretionary, so you’re never locked into a formula. However, if you have employees, you’ll be contributing the same percentage of their compensation to their accounts as you contribute to yours. If your spouse is on the company payroll, you can also make a contribution for them.

Call our office today so we can help you save taxes and start saving for your retirement.