Sorting Out the Self-Employed Retirement Plan Options

If you run your own business, chances are pretty good that you know a lot about the products or services you offer. That’s why you’re in business for yourself, right? But while you’ve surely got that part of it down, you may find that you aren’t nearly as familiar with your business finances — taxes, payroll, accounting, and employee benefits, just to name a few.

For those with employees, the financial complications can become overwhelming, especially if you’re not familiar with all of the rules and options available to you as a business owner. One particularly confusing aspect has to do with employee retirement plans. Even if you have no employees and you yourself are the only one involved, you still may want to set up a retirement plan for yourself.

There are several tax-advantaged options available to a business owner, and finding one that’s suitable for you can be a daunting task. “Professor” Rick Plum, CFP® discusses what some of those options are, and what you may need to consider for yourself and/or your employees on this week’s edition of Lucia Capital Group Weekly!

Important Information:

The information provided should not be considered specific tax, legal, or investment advice and is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

No client or prospective client should assume that the presentation (or any component thereof) serves as the receipt of, or a substitute for, personalized advice from LCG or from any other investment professional.

You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal. This material was gathered from sources believed to be reliable, however, its accuracy cannot be guaranteed.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

IRA withdrawals will be taxed at ordinary income rates. Withdrawals prior to age 59½ may also be subject to a 10% penalty tax.

Roth IRA distributions of principal from a Roth IRA are tax-free; however, any earnings will be taxed at ordinary income rates and a 10% penalty tax will apply if withdrawn prior to age 59½ or within five years of the date the Roth IRA was established, whichever is longer.

Rick Plum is a registered representative with, and securities and advisory services offered through LPL Financial, a registered investment advisor and member FINRA/SIPC. The investment professionals are affiliated with LPL Financial and are conducting business using the name Lucia Capital Group, a separate entity from LPL Financial.

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