Send This To Your Accountant

There are many benefits to being a small business owner. For instance the control of time, quality of life, and being your own boss. However there is one more I would add to the list: Tax Deductions.

Courtesy of the SECURE Act, if you are now setting up a retirement plan (e.g. 401k PS, SEP IRA, Simple IRA), you will receive up to a $500 credit as a further incentive for taking control of your financial life. The best part is that it’s good for 3 years so that is a total of $1,500 of free money. This isn’t an income deduction either, but a straight reduction in your overall tax liabilities. Most accountants don't know about this as the rule was only recently passed.

If you are a small business owner (under 100 employees) and have recently started or would like to start a retirement plan, you will want your accountant to be aware of and fill out Form 8881.