This article has been updated for 2024. Form 945. What Is It? Form 945 is used to report federal income tax withheld from nonpayroll payments, including distributions from Defined Benefit Plans. Do You Need to File? In general, if you have withheld federal taxes from any nonpayroll payments, Form 945 would be required. More specifically, […]
This article has been updated for 2024. A side business provides a great opportunity to save for retirement. In fact, a business owner may be able to save and deduct most or all side business income using a Defined Benefit Plan. SEP and 401(k) Plans significantly limit retirement contributions. Defined Benefit Plans, on the […]
This article has been updated for 2024. How could a business owner deduct a $900k contribution that is used to fund his own retirement? How is such a large contribution possible when SEPs and 401(k) Plans are limited to $69,000 and $76,500, respectively, per year? The answer lies in combining the power of several individual […]
This article has been updated for 2024. Introduction What is the definition of a Defined Benefit Plan? How do they function? Are they similar to other retirement plans? We will answer these and other questions in this article. Defined Benefit Plan Definition Defined Benefit Plans are retirement plans. Unlike Defined Contribution Plans, benefits are not […]
