Hey all,
I'm sure this has been covered on here before, but I was unable to find anything regarding it. I did checkout the sticker topics at the top, but unfortunately they didn't really pertain to business and taxes. Last year was my first year in business, and it turned out to be a great year. Unfortunately, all of this is still so new to me that the only thing I was able to take advantage of was maxing out a traditional IRA, and therefore paid A LOT in taxes.
I plan on making, after business deductions, somewhere between 180k-230k. As of now this is what I have set up to defer taxes and save for FIRE:
Traditional IRA - $5,500 maxed out
Simple IRA - $12,500 (plus a 3% match.) I am an S-Corp and as of now my pay is 25K (accountant thinks we should go a little higher this year) but that gives an extra $750.00 bringing the total to $13,250.
HSA - I am 25 so I am currently on my Mom's Health Care plan at her work, I pay her $110.00 a month for it and just assumed that was going to be cheaper than going out on my own plan. I need to start looking into this as I will need my own coverage in another 7 months or so, and at that point I will also contribute to an HSA, but that doesn't do me much good for 2016.
Those are the only 2 things I have, is there anything else I could do, could I also establish a 401K and put more money into that? Is there any other type retirement accounts I could take advantage of being a small business S-Corp?
Thanks as always for all the wise information given on this forum!