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How can business owners effectively plan for retirement while managing the growth and operations of their businesses?

In this episode, Mike welcomes back Jeremy Keil, a retirement planning expert from Keil Financial Partners, to discuss the importance of retirement planning for business owners. They explore why business owners, whether they're just starting or have been operating for a while, often neglect retirement planning and the possible consequences of doing so. They discuss aspects such as income from businesses, selling businesses, scenarios they have encountered with various business owners, and misconceptions about Health Savings Accounts (HSAs). They also delve into practical steps and strategies that business owners can implement now to save for retirement, such as maximizing HSA and Roth IRA contributions, setting up retirement plans like simple IRAs, SEP IRAs, and 401ks, and taking advantage of age-weighted profit sharing 401ks and after-tax contributions.

[00:00 - 07:21] Retirement Planning for Business Owners

• Jeremy discusses the importance of considering retirement spending, income maximization, and tax minimization for business owners.
• They address the tendency of business owners to overlook retirement planning, focusing instead on business growth and operations.
• The common pitfalls for business owners, such as overvaluing their business or failing to create a business model that functions independently of their personal involvement.
• Jeremy emphasizes the need for business owners to plan for retirement regardless of their current business success.

[07:21- 17:00] Health Savings Account and Other Retirement Saving Strategies for Business 

• Jeremy emphasizes the benefits of Health Savings Accounts (HSAs) for maximizing tax advantages in retirement savings.
• Advice on maximizing HSAs: contribute the maximum amount possible, and pay medical bills out-of-pocket while saving receipts for potential future reimbursement from the HSA.
• Business owners should consider Roth IRAs, especially if their income is below a certain threshold, highlighting the opportunity for both individual and spousal contributions.
• He advises starting small with retirement savings, regardless of business size, and gradually increasing contributions over time.

Quotes:

"Your investments, you have less control over than all the other places that I mentioned. So we want to focus on the things you can control." - Jeremy Keil

"When you're saving into your retirement, you want to get the most tax advantage that you can. And the number one best tax advantage you can get in any account is the health savings account." - Jeremy Keil

Connect with Jeremy!

Website: www.keilfp.com 

Podcast: Retirement Revealed Podcast

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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

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