In The Market
Now's the time to shop for a retirement plan. Find out which one's best for you.
There's never been a better time to establish a tax-favored pension plan. The benefits are double-barreled for entrepreneurs. Setting up a qualified plan not only provides you with a tax deduction for the contributions you make on your employees' behalf, but the money you contribute to your own account is also deductible and is not included in your taxable income until withdrawn. (A qualified plan meets the requirements of the Employee Retirement Income Security Act and the IRS Code.)
On top of that, your own contributions to your account are allowed to earn interest that's tax-deferred until you make a withdrawal. "The power of compounding with pre-tax money is very powerful," says Ward Bukofsky, a CPA with Beverly Hills, California, accounting firm Braverman, Codron & Co.
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