2019-2020 Retirement Planning Contribution Limitations
One of the most important business tax planning deductions comes in the way of retirement planning. The use of a retirement plan allows a business to claim a current year deduction for the amount of the contribution (except for a Roth 401(k)- for which no upfront tax deduction is permitted). The earnings grow tax deferred (tax free for the Roth 401(k)) and are not taxed until the money is withdrawn during retirement. This one of the few tax strategies that any business can (and should) implement. Please click the following link to get to a table of the maximum contributions permitted for various types of defined contribution plans.