For the Self-Employed

Retirement Plans for the Self-Employed
If you are a sole proprietor or 1099 employee and are looking to save as much as possible pretax for retirement, you've come to the right place. The tax law change of 2001 created exciting opportunities for self-employed folks that allow for much higher contribution limits without much more administration.

The Benefits of the New Plan
These new plans are low-cost individual profit sharing/401(k) plans and offer many advantages over traditional plans like SEPs, SIMPLES, Keough plans and traditional profit sharing-only plans. The biggest advantage these new plans offer is much higher pretax contribution limits. With these new plans a self-employed person could put in for 2016 as much as $18,000 annually pretax ($6,000 more if over age 50), depending on how the business is structured and the adjusted gross income of the owner. A second advantage these plans have over a SEP or SIMPLE plan is a loan provision allowing the owner to take out tax-free loans from the retirement account.  It should also be noted that assets in other qualified plans can be rolled into this new plan to take advantage of the loan provision and the asset protection provision.*

Whom might benefit?
Any business that employs full time (over 1000 hours / year) only owners (also works for their spouses) - including C corps, S corps, partnerships and 1099 sole proprietors - is a candidate. The following occupations are examples of those who might want to consider this plan:

Real Estate agents
Independent Board Members
Graphic Artists
Interior Decorators
Chiropractors and other self-employed physicians
Manufacturer's Representatives

How Do I Find Out More?
We work with several companies who currently offer these plans. Contact us and we'll help you set up a plan with the company that best fits your specific needs. Send us an email or give us a call at 678-364-0187.

If you are interested in the new Individual 401(k) plan, let us know as soon as possible. Current year (2016) contributions into a SEP, SIMPLE or other plan might disqualify you from participating in the individual 401(k) plan this year. Contact us or your tax advisor for more information on this.

*You must keep your SIMPLE plan as is for a minimum of 2 years after discontinuing contributions to avoid significant penalties.