How the Simplified Employee Pension Plan can Benefit Your Business
If you’re in business for yourself, either self-employed or you’ve started an actual Sole Proprietorship, it’s essential to find ways to save money on your taxes. After all, you’re in business by yourself, and chances are you may not have any taxes reduced from your income during the course of the year.
The Simplified Employee Pension Plan, or SEP, is an excellent way to provide tax-advantaged savings every year. And being that tax time is coming up fast as we close out the year, your friendly tax pros at Cove Professional Services wanted to take a quick look at how the SEP can benefit your business and create tax savings you’ll appreciate.
Benefits of the Simplified Employee Pension Plan:
We should start with the most essential benefit first! With a newly expanded tax credit of up to $5,000 annually for the next three years, the SEP helps you better prepare for retirement. And you get to claim a tax credit that’s equal to 50% of the eligible start-up costs up to the limit for the first three years of your SEP plan.
SEP IRAs provide you with the retirement building tools that other IRAs do without all of the expensive up-front costs. Thanks to their tax-deductible contributions.
These are just a few of the ways setting up your own Simplified Employee Pension Plan can save you money on your taxes this year. If you have questions or want to know how Cove Professional Services can help you set up your SEP, call us today!