Year-End Tax Planning Strategies Using Profit Sharing / Solo 401(k) Plan:

Small Business owners and self employed persons have option of contributing to various retirement plans which are tax deductible for tax year 2012. Solo 401K is one of them & the last date of establishing is December 31, 2012. Some of the highlights of solo 401K plans are as under:

This is Qualified Retirement Plans for Small Business Owners

  • It is one of the quickest ways to minimize tax Liability
  • Tax deductible Contribution up to $50000 Per Participant
  • Wide Investment Opportunities
  • Asset Protection from Creditors
  • Borrowing opportunity from the plan are available at prime rate ( Currently 3.25% p.a.) with no adverse tax consequences
  • Catch up Contribution of $ 5500 for participant over age 50
  • Control of Investment Decision with yourself.
  • You are the trustee & have full checkbook control.
  • Hardship Distribution allowed in many cases.
  • Contribution comprise of two parts : 401(k) 100% up to $17000 ( catch up $5500 age 50 or older) & Profit Sharing Component of 25% of Eligible Compensation.

LAST DATE TO SET UP Plan is DECEMBER 31, 2012.

Please contact Krupp Consulting Inc. CPAs at 770 881 8490,  if you need help understanding & setting up your plan before the deadline.