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The Business of Savings
Individual 401(k) plan deadlines for 2010 are fast approaching
There is an important deadline for owner-only businesses that want to save the maximum amount on taxes this year.
Individual 401(k) plans, which are for the self-employed or any multiple owner business that does not have any employees, must be setup in 2010 to receive tax benefits. The good news is that you’ll have until your tax filing deadline (April 15, 2011 for most) to make profit sharing contributions into your 401(k) and still receive the tax benefits for 2010. ShareBuilder 401k has one of the later deadlines to buy and setup your plan. It is December 22, 2010.
Shelter up to $49K from Taxes with a 401(k)
Any owner-operated business can shelter up to $49K ($54,500 if you are 50 years of age or older). Plus you have Roth options and penalty free loan options in case of an emergency. To learn other benefits of an Individual 401(k) Plan, just give this a read.
Paying yourself first and giving yourself the gift of saving is one that can keep on giving for years to come. Happy Holidays!