If you and your spouse have a small business (Single LLC, Sole Proprietorship, C or S Corporation) you can have a 401K plan just like the big boys. It is easier to administer than more complicated plans and gives you investment flexibility that the larger plans may not have. See this article in the Christian Science Monitor by Dmitriy Fomichenko for a more detailed view of this popular retirement vehicle:
This is definitely an improvement over a Roth or regular IRA as the contribution limits are larger ($17,500 employee deferral in 2014 for you AND your spouse, up to 100% of compensation, and an additional 25% employer contribution of compensation up to a max of $34,500 each) so you could put away $104,000 if you each take a salary of $134,000. Plus the $17,500 can be a Roth component without the AGI limitations of a Roth IRA, so for high income people it is a great way to go to sock away money for retirement.
For financial, accounting and tax musings,
You can count on us to count for you!
Email:bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com
Android and the IPhone:
Has been Featured On
https://twitter.com/bstonercpa