Year-end is great time for tax planning. Unfortunately, many small business owners are so busy in December that we don’t get around to tax reduction strategies until after year-end.
Since most small businesses are cash basis taxpayers, expenses are generally deductible in the year paid. When we meet at tax time, there are few strategies that can “look back” at the prior year and still reduce taxes.
Continue reading “The SEP-IRA – A Pension Plan in an IRA Body”
Health care costs have continued to skyrocket. There seems to be little that small business owners and others paying for their own health insurance can do other than gritting our teeth and tightening our belts.
Health Savings Accounts (HSA’s) are one of the few ways that we can fight back against rising health care costs. A Health Savings Account is a custodial account set up with a qualified HSA trustee to pay or reimburse you for medical expenses you incur. You must be an eligible individual (see below) to qualify for an HSA. A qualified HSA trustee can be a bank, an insurance company or anyone approved by the IRS to be a trustee of an IRA.
The benefits of a Health Savings Account are significant.
Continue reading “Health Savings Accounts – Bigger & Better”