In the past, a small business could get a tax credit up to $500 per year to help offset the costs of establishing retirement plans.
Now, that amount is up to $5,000 per year.
And yep, that’s a tax credit that goes directly against the taxes you pay.
There is more, though, to the SECURE Act. SECURE stands for Setting Every Community Up for Retirement Enhancement Act of 2019. Here are the highlights:
Some of the provisions, like the rapid requirement of inherited IRAs, are a little tougher on taxpayers. Other things, such as increasing the age at which you’re required to start taking out minimum distributions to 72, seem to just make sense with the changing character of retirement and work in the US.
It also seems like Congress is encouraging businesses to put retirement plans in place for their employees. Small businesses can get a maximum tax credit up to $5,000 for costs to set up retirement plans. Firms also get an additional tax credit for adopting automatic-enrollment 401 (k) plans or IRAs. That tax credit is up to $500 per year for 3 years and is in addition to the credit described above.
For your own retirement plan, it’s not enough to just put money into the plan. You also need to look at what you’re doing with the money that is there. Are you investing it for your future? Do you want to self-direct it?
You can buy real estate, crypto currency, notes, stocks, bonds… a whole range of things with your pension plan. But, you need to set them up right and run them right.
Got a question? That’s the kind of thing we regularly cover in our coaching classes. If you’re not yet a member, go to https://www.ustaxaid.com/coaching-program/ to sign up.
We meet on the first and third Wednesday of each month at 5 pm Pacific. The first Wednesday in March, 2020 will be dealing with the step-by-step templates and agreements to set up your own LLC for your real estate investments. Even if you use an attorney to set it up for you, there are still agreements you’ll want to have in place and questions you need to answer. That’s what we’re going to cover. The Home Study Course, updated for the law changes from the Tax Cuts and Jobs Act (and beyond) is a resource guide you want to keep.
If you have a question about whether the coaching course is right for you, Contact Us.