The IRS just announced that the 401(k) contribution limits will rise from $17,000 a year to $17,500 a year beginning 2013. If you’re 50 or older you can contribute $23,000 a year.
A 401(k) plan is not just for big business. Small business owners who have no employees an “individual” or “solo” 401(k) is available and can be a great tax planning strategy. Another consideration is to hire your spouse and have them contribute to the 401(k).
Now a 401(k) requires more administration than other company retirement plans, but it may very well be worth the “investment” of administration to reap the tax savings.
Let us help you with a Proactive Tax Plan, give us a call or request our free Tax Book for business owners.