Are you a small business owner? If not, do you know any?
These days its hard enough to make ends meet and keep your business going. Small businesses like yours are the key to reviving our economy.
Would you like an idea that will help you and your employees to save money and reduce your taxes?
Did you know that when you establish a 401(k) or other kind of qualified retirement plan, you may be eligible for a tax credit equal to 50% of the cost of starting up and administering the plan? The maximum allowable credit is $500 per year for each of the first 3 years of the retirement program. This is according to EGTRRA (Economic Growth and Tax Relief Reconciliation Act of 2001) .
Other types of retirement plans for small businesses which qualify for the tax credit are the SEP IRA (Simplified Employee Pension Plan) and the SIMPLE IRA (Savings Incentive Match Plan for Employees) .
To qualify for the tax credit:
* The plan sponsor must incur qualified startup costs. These would be expenses for setting up or maintaining the plan, or for retirement-related employee education.
* The plan must be a new plan established AFTER December 31, 2001.
* The plan must have at least one non-highly compensated employee. Usually this would be someone who is not an owner and has earned less than $105,000 in the prior year.
* The plan sponsor must have employed 100 people or less who received at least $5000 or more in compensation during the prior year.
Does this sound like your business so far? If I can help you & your employees to save money for your future needs and lower your taxes, please contact me today. This will be part of my upcoming book as well – “Help! My 401(k) Has Fallen and Can’t Get Up!”
I should also mention that unless the current law changes, EGTRRA is set to expire at the end of 2010.
Please contact me for more information on 401(k) plans or IRAs at http://www.helpmy401k.us/.
You may also contact me on Linked In at http://www.linkedin.com/in/dvoelker or Twitter at http://www.twitter.com/deanvoelker. I also host a weekly financial advice program, Improving Your Financial Health at http://www.blogtalkradio.com/401kcoach.