You work and you work and you work, and you save, but it never feels like you’re stashing away enough money. There are always so many expenses it can become overwhelming.
But fear not. There’s at least one way entrepreneurs can save a significant amount of cash for retirement. Let me explain.
There’s been a slew of legislation that is punitive to small-business owners, from minimum wage increases throughout the country to the so-called Affordable Care Act. The tax code isn’t much better, and with many entrepreneurs using pass-through entities that have them paying tax at a personal income tax rate (vs. corporate income tax rate), any future corporate tax reform is not likely to affect the average entrepreneur favorably.
However, there is one part of the tax code that is favorable for entrepreneurs and that’s around tax benefits for retirement savings.