Pay Yourself or Pay The IRS — You Choose!
Author: Chad Parks / 17 Apr 2012 / Retirement Trends & News
It’s that time of year again, time to reconcile your taxes, and either pay in even more or get some back. Doesn’t really matter either way, at the end of the day you still paid a bunch — probably more than you wanted to!
So here’s the deal:
You know you need to save for your retirement. We can help you figure out the best way, and best of all we’ll get the government to pay for it.
That’s right. The government wants to pay you to not pay them. Cool huh?
Why? It’s because they realize that there is a looming retirement crisis on our hands, and they realize that Social Security is not meant to be the main pillar of your retirement. They want and need you to save.
Here’s how it works. The government wants you to save so badly, they offer:
- Tax deductibility of your retirement savings
- Tax-deferred growth on your savings
- Tax deductions for the expense of having a retirement savings plan if you are a business
- Tax credits up to $500 a year for three years for your business if you put a plan in place
That’s a lot of tax incentives don’t you think?
It really is not complicated.
A simple question for you the owner of a business or you the employee of a business that does not have a plan:
Can you (the owner) personally afford to save $160 a month? I would hope that you said yes.
Well through the magic of math, and the generosity of the IRS, that is all you need to save to have a free retirement plan for you and your employees.
It’s a win-win-win.
- You the owner wins because you begin saving for retirement. At $160 a month the tax savings and the tax credits pay for the plan entirely. Any savings beyond $160 a month, and you really are getting paid to save. Or think about it this way, those tax dollars are going out the door straight to the IRS regardless. Why not legally redirect those for your immediate benefit?
- Your employees win. They become more appreciative, think of you as a hero, and now have the ability to save at work for their own retirement. Note, you are not required to do any matching!
- The government wins because you have done your part to help solve the looming retirement crisis. Thanks!
