Year End Retirement Strategies

Take advantage of these strategies to help you reach your retirement goals before the year ends.?

1. Establish Your 2022 Retirement Plan

If you have not yet put your retirement plan into place, do so before the year's end to take advantage of tax deductions for 2022. Whether you operate as a proprietorship or corporation, a 401(k) plan will allow you to make contributions as both employee and employer.?

2. Claim the Start-Up Tax Credit of Up to $15,000

Once you have established your 2022 retirement plan, you can qualify for a non-refundable tax credit that’s greater than $500 or lesser than $250 multiplied by the number of your non-highly compensated employees who are eligible to participate in the plan.?

3. Claim the New Automatic Enrollment Tax Credit

As a small employer, you can utilize the Secure Act and contribute $500 for the past three years ($1500 total) in a 401(k) with an automatic contribution arrangement. This can apply to new or existing retirement plans.

4. Convert to a Roth IRA

There are many advantages of contributing to a Roth IRA as opposed to a 401(k) or traditional IRA.?

• You can withdraw at any time without a tax penalty
• You do not pay tax on the money contributed to your Roth IRA you withdraw after you turn the age of 59 1/2.?
• You can keep your Roth IRA intact indefinitely, even after you have passed.??

If you would like our help with any of the above, please don't hesitate to call our direct line at (817) 383-0927 or book a complementary strategy session here.?

Sincerely,

The Francis and Reeves Advisory Team?