We’re reposting that message here, in the event there are other diligent savers out there looking for a last-minute break.
(Sorry, this message applies only to those with an existing SIMPLE-IRA account. if you haven’t already set up a SIMPLE-IRA plan for your business for 2013, it’s too late to do so. The deadline was October 1. But you’re just in time to get a jump on 2014, and set up a plan starting January 1. We often recommend the SIMPLE as the perfect retirement plan for our small businesses clients who have employees:
- no annual overhead or administration costs
- most contributions are made by employees, not employers
- and there’s no complicated testing, reporting or accounting.
We know you have better things to do than worry about taxes this holiday season, BUT ….
…you only have a few days left to maximize contributions to your SIMPLE-IRA account if you have not already done so!
You can contribute up to $12,000 in salary to your SIMPLE-IRA ($14,500 if you are age 50 or older by December 31, 2013).
Here’s how your contribution benefits you:
- You increase the amount of your potential employer match.
- You escape taxation on the entire amount of salary being contributed (and the employer match, assuming you are the employer).
- You benefit from years of tax-deferred growth in your SIMPLE account.
- You move your unproductive cash into a tax-deferred, creditor-protected, long-term growth environment.
Have we convinced you?
If you have not already maximized your salary contribution, please take a moment to do so.
As an example, if you are in a 33% tax bracket, each $1 contributed costs you only 67¢.
The government is picking up the tab for the remaining 33¢.
Now that’s a holiday sale!