In today’s episode, Stephanie asks about a specific retirement IRA account and which retirement plan is best and why?
This is a very detailed episode loaded with awesome content and value so you can decide which path to sustainable wealth is best for your future.
I’ll share that with you in this episode, But I am also going to share with you multiple retirement vehicles that I think are best for businesses and entrepreneurs alike,
So that will address Stephanie’s question about what are the best plans for retirement.
Remember, everybody’s income and situation is different, but this will be some great general guidance on how and where to get started with setting up for sustainable wealth.
The SIMPLE IRA is an employer sponsored retirement plan available to small businesses with less than 100 employees including sole proprietorships, partnerships, and both “S” & “C” corporations.
SIMPLE IRA’s consist of 2 parts: an optional employee salary deferral and a mandatory employer match. SIMPLE IRA’s are easy to administer and IRS filings are not required.
The Individual 401k is a self employed retirement plan that is sometimes referred to as a Self Employed 401k, Solo 401k, Single(k) and Personal 401k. I usually refer to it as the solo 401k but in this episode you will hear me going back and forth between the individual and solo 401k as those are the two most common references used.
The Solo 401k is the newest and most exciting retirement plan to benefit the self employed, thanks to the tax law created by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). This tax law became effective beginning January 1, 2002 and provides significant advantages to small businesses whose only employee is the owner or the owner and their spouse. These self employed business owners can establish an Individual 401k plan and take advantage of this powerful retirement savings tool.
What makes the Individual 401k so unique is that compared to other self employed retirement plans greater contributions may be made even if at the same or identical income levels, therefore maximizing retirement contributions and valuable tax deductions. The 2016 Individual 401k contribution limits are $53,000 and $59,000 if age 50 or older.
I will also discuss the SEP IRA and the “Defined Benefit Retirement Plan”, so be sure not to miss this one and set your self free for the future.
With all my intention, I wish you the best of sustainable success!
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