Ways To Save As A Small Business Owner
SEP IRA: works like a traditional IRA but for business owners. Contributions are tax deductible and investments grow tax free until you withdraw. Note you must contribute the same percentage you stash away for your retirement for your employees if you have any. The max contribution for 2022 is $61,000 or 25% of your compensation.
Solo 401(K): Can’t have any employees with the exception of a spouse for this one. Hey bae! You can contribute up to $20,500 in 2022.
SIMPLE: You can have 100 employees or less for this one and you have to contribute every year. You also have to contribute to employees’ retirement plans. Contributions and growth are tax-deferred and the contribution limit for 2022 is $14,000.
If your cash flow won’t allow you to contribute more than $6,000, then you may want to skip the extra paperwork that comes with these accounts and open a traditional IRA account.
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About the Host
Rianka R. Dorsainvil
Rianka R. Dorsainvil, CFP®️ is the Co-Founder and Co-CEO of 2050 Wealth Partners a virtual, fee-only comprehensive financial planning firm dedicated to serving first-generation wealth-builders, entrepreneurs, and thriving professionals. Rianka also hosts 2050 TrailBlazers, a podcast aimed to address the lack of diversity in the financial planning profession by engaging industry experts and leaders in conversation.
As an award winning successful, millennial Certified Financial Planner professional, Rianka offers a unique perspective not only on the current state of the financial service industry, but on how to stay relevant in an ever-changing world.
Rianka serves as a member of CNBC’s Digital Financial Advisor Council and CFP Board’s Diversity Advisory Group, is a Forbes Personal Finance Contributor, and has been recognized for her accomplishments and leadership within the industry by leading publications and organizations such as Investment News’ inaugural 2017 Women to Watch Rising Star and Wealth Management’s Ten to Watch in 2018. She has been published in PBS NewsHour, Forbes, USA Today, Black Enterprise, CNBC, Women’s Health, and more.