If your business doesn’t already have a retirement plan, it might be a good time to take the plunge. If you’re self-employed and set up a SEP-IRA, you can contribute up to 20% of self-employment earnings, with a maximum contribution of $69,000 for 2024 (up from $66,000 for 2023). If you’re employed by your own corporation, up to 25% of your salary can be contributed to your account, with a maximum contribution of $69,000 for 2024. If you’re in the 32% federal income tax bracket, making a maximum contribution could cut your federal tax bill for 2024 by $22,080 (32% × $69,000). In addition to a SEP, there are other retirement plan options. We can provide information on the best one for you.
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