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Deducting Retirement Contributions
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One of the best ways to reduce your tax bill, while increasing your net worth and future security is to invest in a retirement plan. When you own the show, you're in a position to tailor-make a plan that suits your needs precisely. If you set up a plan that meets the IRS requirements, you can make tax-deductible contributions to the plan, which will build up tax-free until you withdraw them.
As a self-employed business owner, your major retirement plan options are:
- Keogh plans - defined benefit, defined contribution, or hybrid retirement plans set up by a self-employed person or partnership. Common types of Keogh Plans include money-purchase plans and profit-sharing plans.
- Simplified Employee Pensions (SEPs) - a very flexible, easy plan to set up that involves making contributions to special Individual Retirement Accounts (IRAs) set up for the business owner and each eligible employee.
- SIMPLE plans - a relatively new type of simplified retirement plan, the Savings Incentive Match Plan for Employees (SIMPLE plan, which allows employees to make elective contributions of up to $10,000 per year in 2006 and requires employers to make matching contributions.
- Individual Retirement Accounts (IRAs) - the easiest solution to retirement savings, although your contributions are generally limited to $4,000 per year in 2006 and 2007.
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CompleteTax Advantages
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- FREE electronic filing with paid processing.
- CompleteTax prepares both your federal and resident state returns.
- File electronically and you may qualify to use our Refund Anticipation Loan (RAL) service, which lets you get your refund FAST!
- Our useful Tax Guide provides tax tips and straightforward answers to your tax questions.
- If you owe a balance on your taxes, you can conveniently pay it by credit card. This service is available for federal taxes and certain states.
- Take advantage of FREE e-mail support, or an online chat service that gets your technical questions answered for a small fee.
- Learn how to file an Amended Return.
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