Have you ever wondered whether your current retirement plan is actually helping you save enough in taxes, or if you are overlooking strategies that could make a much bigger impact on your business and long-term wealth?

Many business owners rely on a traditional or Roth IRA without realizing that these accounts have relatively low contribution limits. While they can be a helpful starting point, they may not provide meaningful tax savings for business owners earning six figures or more. At the same time, choosing a retirement plan based only on the size of the tax deduction can create cash flow problems and leave you without enough money to reinvest in your business.

In this episode, Andrea breaks down missed tax deduction number two, retirement contributions. She explains the differences between traditional and Roth IRAs, SEP IRAs, Solo 401(k)s, Safe Harbor 401(k)s, and cash balance plans. She also shares how to evaluate which retirement plan fits your current business structure, income, team size, and growth goals while balancing tax savings with the need to keep cash available for strategic investments.

Tune in to hear:

• Why traditional and Roth IRAs may not provide significant tax savings for high-earning business owners
• How business owners may be leaving valuable retirement deductions on the table
• Why a SEP IRA can be an easy retirement plan to establish when you do not have employees
• How SEP IRA contribution requirements can become expensive after you begin hiring
• Why a Solo 401(k) may be a strong option for businesses owned by an individual or married couple
• How Solo 401(k) contributions can significantly reduce taxable business income
• How a Safe Harbor 401(k) can allow employees to contribute while receiving an employer match
• How profit-sharing contributions can reward employees and create additional business deductions
• Why cash balance and defined benefit plans may benefit high earners seeking larger deductions
• The difference between the deadline to establish a retirement plan and the deadline to fund it
• Why waiting until tax season may cause you to miss important planning opportunities
• Why retirement planning should begin before the end of the year
• How to determine whether additional cash should go into retirement or back into your business
• Why hiring, improving systems, or expanding operations may produce a higher return than the stock market
• The retirement planning questions your CPA should help you answer before year-end
• How to balance taxes, retirement investing, cash flow, and business growth
• Why the ultimate goal is not simply the largest deduction, but the strongest long-term wealth strategy

Connect with Andrea & Emily:

• Book a Free Assessment: Text "Tax" to +1 (951) 618-4015
• 5 Cash Leaks and 5 Tax Deductions Draining Your Business: https://www.thorneadvisors.com/cashleaks
• Website: https://www.thorneadvisors.com/ 
• IG: https://www.instagram.com/THORNEADVISORS