Description
As an advisor, working with W-2 income clients and retirement plans is straightforward: you get what you get. But with self-employed clients, the options for retirement plans are much more varied. Each has advantages and disadvantages, and each has implications for a client's personal tax return. Advisors should know the details, benefits and limitations of each plan type, as well as how plan consideration may change as employees are added.
Learning Objectives
Understand the primary retirement plans available to self-employed individuals; distinguish the calculations for maximum contributions for each plan type; consider how self-employed plan contributions impact personal tax returns; understand how self-employed retirement plan contributions interact with the Qualified Business Income Deduction