Posted 12/26/2024 14:14 (#11026974 - in reply to #11025438) Subject: RE: Hey Boone and others, any tax advantages you care to share?
SW Iowa
Will depend on the specifics of your operation whether you qualify and how it compares to Simple or other options, however if you have a business entity with only you or you+spouse as W2 employees take a look at rules for solo 401k.
Basically employer can contribute up to 25% of gross wages as expense for the business, then as employee you can elect to contribute up to $23k (or 100% of compensation if less) + there are some catch-up provisions that allow more if you are age 50+. Employee contribution needs to be made by Dec 31 (so may be a challenge to get paperwork done in time to get that in place for 2024 at this point); business contribution can be up to April 15, I think. IIRC employer part needs to go into traditional but employee side can go into roth 401k if you want.
Hey Boone and others, any tax advantages you care to share?
