Law Office of Yoel Molina, P.A.
  • Home Page for Business Attorney, Yoel Molina / Abogado Corporativo y de Negocios Yoel Molina
  • 10 tips to avoid bad business deals
  • Traffic Ticket blog/ Blog de Multa y Tickets
  • Business Law
  • Derecho empresarial
  • Corporate & Business
  • Corporaciones & Negocios
  • T.V. Appearances, Awards, Affiliations, and Miami, Fl. Community Involvement of Business Attorney Yoel Molina/ T.V. Apariciones, Premios, Afiliaciones y Miami, Fl. Participación Comunitaria del Abogado Comercial Yoel Molina
  • Garantia De Reembolso De Dinero.
  • Client Video Testimonials of Business Law Attorney Yoel Molina / Video del cliente Testimonios del Abogado de Derecho mercantil Yoel Molina
  • About The Law Office of Yoel Molina, P.A. Miami Law Office / Sobre la oficina de abogados de Yoel Molina P.A. Oficina de Derecho de Miami
  • Acerca de la Oficina de Derecho Empresarial y Corporativo de Yoel Molina / About the Business and Corporate Law Office of Yoel Molina
  • Miami Corporate and Business Client Services / Servicios para clientes corporativos y comerciales de Miami
  • Biografía del Abogado de Derecho Empresarial y Corporativo Yoel Molina
  • Contact Business and Corporate Law Attorney Yoel Molina / Contacte al Abogado de Derecho Comercial y Corporativo Yoel Molina
  • Blog / Who cannot contract?
  • Terms and Conditions of Legal Service Agreement
  • Spanish / Espanol Blog
  • Business Blog
  • General Counsel Landing Page
  • Business Law Subscription Plan Service
  • Nuestros Precios
  • Business Package / Landing Page. Spanish
  • Business Package / Landing Page. BILINGUAL
  • Business Package / Landing Page. English
  • Our Fees
  • Money Back Guarantee
  • Appointment Page
  • Free legal tips Ad
  • General Counsel Unlimited Advice Plan Interest Form
  • About The Law Office of Yoel Molina, P.A. Miami Law Office / Sobre la oficina de abogados de Yoel Molina P.A. Oficina de Derecho de Miami
  • Home Page for Business Attorney, Yoel Molina / Abogado Corporativo y de Negocios Yoel Molina
  • 10 tips to avoid bad business deals
  • Traffic Ticket blog/ Blog de Multa y Tickets
  • Business Law
  • Derecho empresarial
  • Corporate & Business
  • Corporaciones & Negocios
  • T.V. Appearances, Awards, Affiliations, and Miami, Fl. Community Involvement of Business Attorney Yoel Molina/ T.V. Apariciones, Premios, Afiliaciones y Miami, Fl. Participación Comunitaria del Abogado Comercial Yoel Molina
  • Garantia De Reembolso De Dinero.
  • Client Video Testimonials of Business Law Attorney Yoel Molina / Video del cliente Testimonios del Abogado de Derecho mercantil Yoel Molina
  • About The Law Office of Yoel Molina, P.A. Miami Law Office / Sobre la oficina de abogados de Yoel Molina P.A. Oficina de Derecho de Miami
  • Acerca de la Oficina de Derecho Empresarial y Corporativo de Yoel Molina / About the Business and Corporate Law Office of Yoel Molina
  • Miami Corporate and Business Client Services / Servicios para clientes corporativos y comerciales de Miami
  • Biografía del Abogado de Derecho Empresarial y Corporativo Yoel Molina
  • Contact Business and Corporate Law Attorney Yoel Molina / Contacte al Abogado de Derecho Comercial y Corporativo Yoel Molina
  • Blog / Who cannot contract?
  • Terms and Conditions of Legal Service Agreement
  • Spanish / Espanol Blog
  • Business Blog
  • General Counsel Landing Page
  • Business Law Subscription Plan Service
  • Nuestros Precios
  • Business Package / Landing Page. Spanish
  • Business Package / Landing Page. BILINGUAL
  • Business Package / Landing Page. English
  • Our Fees
  • Money Back Guarantee
  • Appointment Page
  • Free legal tips Ad
  • General Counsel Unlimited Advice Plan Interest Form
  • About The Law Office of Yoel Molina, P.A. Miami Law Office / Sobre la oficina de abogados de Yoel Molina P.A. Oficina de Derecho de Miami
Search by typing & pressing enter

YOUR CART

5/8/2022 0 Comments

Self-Employed: Which retirement plans exist for them?

Picture
By The Law Office of Yoel Molina.
 
One of the numerous benefits of working for yourself as a freelancer, independent contractor, or another type of self-employed worker is the flexibility to manage your own retirement plan. This both helps to create a secure future and makes financial sense right now because your plan contributions will probably be tax-deductible.

Learn about the various aspects of the retirement plans you can pick from before making your decision. You must be aware of the following.

 
Who is considered self-employed for these plans' purposes?
If you work by yourself and have no staff, you can set up one of the plans listed below. (You can still create a strategy once you hire people, but the factors to take into account are more intricate.)
 
-           You must own a business in order to be regarded as self-employed.
- On your own (for instance, as a sole entrepreneur, freelancer, or independent contractor)
- In a collaboration with others; - as a limited liability company or limited liability partnership.
 
You are not regarded as self-employed if your company is run as a C corporation or an S corporation.
 

Plan Selection Considerations:
Consider the characteristics that the retirement plan should have to satisfy your demands before choosing one. Here are some inquiries to make regarding the ideas you are thinking about:
 
What tax advantages are there? You can contribute more to some plans than to others in some circumstances. In general, the tax benefit increases with the size of the donation.
What are the plan's costs? Several administrative tasks are necessary for some plans. To compute contributions for some, you will need to hire an actuary (a person skilled in math). You must submit reports to the government as part of some schemes. Only you can determine whether the administrative expenses of the plan outweigh its financial and time-intensive rewards.
Do you have to make annual contributions to the plan? If the revenue from your firm fluctuates from year to year, this is a crucial factor to take into account. You might want to have the choice to contribute little or nothing during difficult times. You won't always have this freedom with plans.
What time frame do you have for creating the plan? Certain sorts of plans must be set up before December 31 of the year that contributions are to be made. Others may be established as late as your income tax return's extended due date.
 
The Most Popular Plan Types:
SEPs. SEPs or SEP-IRAs also referred to as simplified employee pensions, are straightforward and adaptable. They permit you can make contributions of up to 25% of your business revenue, with a 2017 plan year ceiling of $54,000. You are not required to contribute the maximum allowed by the plan; you can always contribute less or nothing at all.
 
This might be the plan for you if you've left it until the last minute to decide on your retirement plan options: The delayed due date of your income tax return is the latest you can start a SEP.
 
A solo 401(k). Can be what you need if the contribution restrictions on a SEP aren't quite high enough for you. You can contribute up to $18,000 plus 20% of your business income to this 401(k) plan for self-employed people (up to a maximum of $54,000 in 2017). If you are over 50, the 2017 deferral cap is $60,000 and the maximum deferral amount is $24,000. Similar to a SEP, you can choose to make minimal or no contributions during difficult economic times.

Compared to a SEP IRA, this sort of plan necessitates more paperwork. You must submit a separate tax return for the plan once your account reaches $250,000 or higher. Furthermore, the setup and maintenance expenditures of a solo 401(k) are higher than those of a SEP.
The plan must be set up by December 31 of the year you want to make the contribution (and take the tax break).
 
Defined benefit arrangements. The pension plan your parents or grandparents had in the past is similar to this type of plan. When you retire, defined benefit plans make the commitment to pay you a certain amount of money, typically once a month or once a year, for the rest of your life.
 
Because an actuary must determine your contribution amount, the plans are difficult and expensive to set up. Additionally, these programs lack flexibility and need donations. However, you should think about this kind of plan if you earn a lot of money and want the option to make sizable contributions. You will require the advice of a financial adviser or pension expert to set up a defined benefit plan.
​
 
If you have any questions about this article or similar matters, please contact our office, the Law Office of Yoel Molina, P.A., at fd@molawoffice.com or 305-548-5020, option 1
0 Comments



Leave a Reply.

    Author

    Write something about yourself. No need to be fancy, just an overview.

    Archives

    February 2023
    January 2023
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022

    Categories

    All

    RSS Feed


​Attorney Molina's BIO

Contact 

Criminal
Blog


Business Blog


Copyright 2018
​All Rights Reserved

"Mr. Molina has always been there for us with timely, reliable and competent advice. He is an important and valuable part of our team."  Corporate Client Eric Delgado, President of American International Export, Inc., a worldwide importer and exporter of brand name appliance parts.
"Yoel has been responsive and attentive to our company’s best interests and needs.   He has been a valuable resource to our company.  Any company that enlists his services would be in good hands-- including our own clients.” Corporate Client Gibran Flynn - Co-Owner and Founder of Eleva Solutions, Inc., the South Florida leader of outsourced HR, Staffing, Training, and Loss Prevention.
"My name is Anastasia Yecke Gude and I am the owner of Healing Hands Therapeutic Massage LLC.  In the process of my company’s growth and expansion, I suddenly found myself a few weeks ago in need of a 1099 contractor agreement, and I needed it ASAP.  As in, the very next day!  I contacted the Law Office of Yoel Molina and his assistant put me in touch with Mo.  I sent him what I had drafted up and he replied within a few hours with suggested revisions and clarifications, as well as a few insights I had not even considered.  I was thoroughly impressed by the quality of work he provided, especially considering the time crunch I put him in (sorry, Mo!).  I definitely recommend his services to anyone in need of a good contract attorney, and I will be calling him again for future work…hopefully in less of a rush next time!"