Home > In the News
> The Business of Saving
The Business of Savings
The 401(k) Plan Designed for More Saving, Less Taxing
What if there was a 401(k) plan for small business that:
- Let you save up to $16,500 into your 401(k) account ($22,000 if 50 years of age or more) without restrictions common with other plan types
- Let you choose whether to save on taxes this year by making contributions tax-deferred, or hedge against higher taxes in the future by contributing after-tax to the Roth 401(k)
- Automatically satisfies IRS testing requirements for 401(k) plans
We have some great news, there is. It’s called a Safe Harbor 401(k) plan. The Safe Harbor option allows business owners to contribute the maximum deferral amount to their own account and as a result lower their personal taxes this year. By providing a “safe harbor” match for employees, any employee including the owner can give the maximum to the plan. This match is what helps the business avoid the hassles of government discrimination testing. And the match will be tax deductible for your business.
If you are looking to save more for retirement and/or lower your taxes this year, our deadline for this kind of plan for this calendar year is September 21st! To get more details about Safe Harbor, just download our guide.