Retirement Moves You Can Still Make for 2024 Taxes
Retirement Moves You Can Still Make for 2024 Taxes  
Podcast: Small Business Tax Savings Podcast
Published On: Wed Jan 15 2025
Description: Send us a textAre you maximizing your tax savings while building your retirement plan, or leaving opportunities on the table?In this episode, Mike Jesowshek is joined by Matt Ruttenberg to discuss strategies for reducing your 2024 tax bill through retirement contributions and planning. They highlight key deadlines for individual and employer contributions, such as the April 15th cutoff for IRAs and the extended filing deadlines for employer contributions. They also delve into options like solo 401(k)s, safe harbor plans, and cash balance plans, emphasizing the importance of early planning and ongoing consultation to maximize tax savings and retirement benefits.[00:00 - 02:17] IntroductionMike welcomes Matt Ruttenberg back to the show as a trusted retirement expert.Discussion begins with how the new year presents opportunities to address past tax planning mistakes.[02:18 - 05:59] IRA ContributionsDeadlines for Roth and traditional IRAs are April 15th.Contributions are based on individual earned income, not business profits. Lesson: Plan IRA contributions early, as extensions don't apply.[06:00 - 10:14] Profit Sharing and Employer ContributionsEmployer contributions for profit sharing plans can be made until the extended filing deadline.Different strategies, such as "new comparability," can maximize owner benefits.[10:15 - 13:28] Solo 401(k)s and New RulesFirst-year solo 401(k) participants can contribute employee portions up to April 15th.This rule applies to sole proprietors and single-member LLCs, not S-corporations.[13:29 - 16:11] Safe Harbor and ComplianceSafe harbor plans help owners and highly compensated employees avoid compliance issues.A 4% non-elective contribution can be made post-deadline to improve compliance.[16:12 - 24:33] Advanced Plans: Cash Balance and Defined BenefitHigh-income businesses can use defined benefit plans for contributions up to $300,000.These plans require actuary involvement and multi-year commitments.[24:34 - 31:16] Key Takeaways and Planning for 2025Employer contributions can be made until the filing deadline, including extensions.2025 should focus on proactive tax planning to avoid last-minute issues.Direct Quote:"All 401(k) plans are not created equal; work with someone who knows the options available to you." - Matt RuttenbergBuild a custom 401(k) for your business by visiting https://lifeincrs.com/tax-savings-podcast/ ______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin TaxElm: https://taxelm.com/-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/YouTube: www.TaxSavingsTV.com