Like many business owners, you have probably put years of sweat and sacrifice into your company — and it may be your single largest asset.
However, you shouldn’t hinge your retirement security on your business alone: An ill-timed economic downturn or shift in the market could leave you with far less in retirement than expected.
And Then There Are Taxes
Many business owners are likely to face higher taxes in 2013 and beyond as the federal government tries to rein in its deficit. This factor makes it an attractive time for business owners to stow away money in tax-deferred retirement accounts that provide a deduction today.
Fortunately, business owners have access to special retirement plans that allow them to save more per year on a tax-deferred basis than the typical worker — possibly $50,000 or more in 20131.
Find the Best Plan for You
Each small-business retirement plan has different contribution rules, limits and considerations. Your Regions Wealth Advisor can help you review your options to find the plan that best fits your business and personal goals have access to special retirement plans2 that allow them to save more per year on a tax-deferred basis than the typical worker — possibly $50,000 or more in 2013.
Selecting the Right Plan
Choosing the right one depends on several personal factors, including how many employees you have, if any; your savings goals; and your personal and business financial situation. Even if you already fund a retirement account, now is a good time to review the options and your tax situation to make sure your plan is appropriate.
1 2012 Contributions may be made until the April 15 federal tax-filing deadline.
2 Qualified Plans, formally called Keogh Plans, carry special rules about who qualifies to contribute. Ask your Regions wealth advisor for more information.
