You can set up and maintain the following small business retirement
plans for yourself and your employees.
- SEP (Simplified Employee Pension) plans.
- SIMPLE (Savings Incentive Match Plan for Employees)
- Qualified plans (including Keogh or H.R. 10 plans).
SEP, SIMPLE, and qualified plans offer you and your employees a tax
favored way to save for retirement. You can deduct contributions you
make to the plan for your employees on line 19 of Schedule C. If you
are a sole proprietor, you can deduct contributions you make to the
plan for yourself on line 29 of Form 1040. You can also deduct
trustees' fees if contributions to the plan do not cover them.
Earnings on the contributions are generally tax free until you or your
employees receive distributions from the plan in later years.
Under some plans, employees can have you contribute limited amounts
of their before-tax pay to a plan. These amounts (and earnings on
them) are generally tax free until your employees receive
distributions from the plan in later years.
For more information on retirement plans for small business, see
Retirement Plans for Small Business (SEP,
SIMPLE, and Qualified Plans).
Individual Retirement Arrangements (IRAs)
(Including Roth IRAs and Education IRAs), discusses other tax
favored ways to save for retirement.
Previous | First | Next
Publication Index | 2000 Tax Help Archives | Tax Help Archives | Home