#shorts #smallbusinessowner #2023

One of my 10 Year End Financial Planning Tips.

What in my opinion might be the best retirement account for small business owners, the Solo 401(k). But to fund an employee deferral, one must be opened by Dec. 31.
Check out my handy calculator to find out which retirement plan is best for your small business.

Here is why the Solo 401(k) may be better than the SEP IRA.

⬇️ DISCLAIMER :

Celestial Wealth Management, LLC is registered as an investment adviser in the State of Maryland and Texas.

Neither the information nor any opinion constitutes an offer or an invitation to make an offer, to buy or sell any securities or other financial instruments.

This video is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person.

Investors should seek financial advice regarding the appropriateness of investing in financial instruments and implementing investment and planning strategies discussed in this video and should understand that statements regarding future prospects may not be realized.

Nothing provided here constitutes tax advice. Individuals should seek the advice of their own tax advisor for specific information regarding tax consequences of investments.

Investments in securities entail risk and are not suitable for all investors. This is not a recommendation nor an offer to sell (or solicitation of an offer to buy) securities in the United States or in any other jurisdiction. All investment strategies have the potential for profit or loss….(read more)

LEARN MORE ABOUT: IRA Accounts

CONVERTING IRA TO GOLD: Gold IRA Account

CONVERTING IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

As a small business owner, it is essential to plan for retirement. With so many retirement accounts available, choosing the right one can be a daunting task. The best retirement account for small business owners should be easy to set up, low cost and offer significant tax advantages. In this article, we will explore the best retirement account options for small business owners.

SEP IRA
A Simplified Employee Pension IRA (SEP IRA) is an excellent retirement account option for small businesses, especially for those with employees. SEP IRA’s are easy to set up, and the employer can make contributions to the account on behalf of the employee. The contribution limit for a SEP IRA for 2021 is the lesser of 25% of your compensation, up to $58,000. The contributions are tax-deductible and grow tax-free. This makes it an attractive option for small business owners looking to reduce their tax liabilities. However, with a SEP IRA, you must make contributions to the account for all eligible employees.

Solo 401(k)
A Solo 401(k) is a retirement account designed for entrepreneurs without any full-time employees. You can contribute as both the employer and the employee, which can be up to $58,000 for 2021, depending on your age and income. With a Solo 401(k), you can make tax-deductible contributions and also make contributions on a pre-tax or after-tax (Roth) basis. Solo 401(k)s are relatively easy to set up and manage, and you can invest in a wide variety of assets, including stocks, bonds, mutual funds, and more.

SIMPLE IRA
A Savings Incentive Match Plan for Employees (SIMPLE IRA) is an excellent option for small businesses with a few employees. With a SIMPLE IRA, the employer must make either a matching contribution or a non-elective contribution, and employees can contribute up to $13,500 for 2021, with a $3,000 catch-up contribution for those over 50. Contributions are tax-deductible, allowing you to reduce your taxable income. The SIMPLE IRA is easy to set up, and there are no annual filing requirements.

Traditional IRA and Roth IRA
If you do not have any employees, and you are looking for a simple and low-cost retirement option, you can consider opening an Individual retirement account (IRA). There are two types of IRAs – Traditional and Roth. A Traditional IRA allows you to contribute pre-tax income, which reduces your taxable income, and you will not pay taxes on your contributions until you withdraw them during retirement. With a Roth IRA, contributions are made with after-tax dollars, and the account grows tax-free. You will not pay taxes on contributions or withdrawals during retirement. The contribution limit for 2021 for both types of IRAs is $6,000, or $7,000 for those over 50.

Conclusion
There are several retirement account options for small business owners, each with its unique advantages. It is essential to consider your business model, employees, and financial goals before making a decision. If you have employees, a SEP IRA or a SIMPLE IRA may be a good option. If you do not have employees, a Solo 401(k), Traditional IRA, or Roth IRA may be a better option. It is advisable to consult with a financial advisor to help you choose the best retirement account that suits your business needs and financial goals.