Retirement plans for businesses
SEE 2 Chapter 23 · IRS outline 3C1, 3C2, 3C3, 3C4, 3C5, 3C6
Daniel made a good profit this year and asks what he can do about it. Walt wants a rich plan for himself and very little for his workers. Mira would like to borrow from the plan to buy a building it rents back to her. Theo opens a folder of numbers: $23,500, $70,000, $350,000 and $160,000. Nadia says that once you learn these few numbers and a few rules, retirement plans turn out to be the friendliest tax topic in the book, as long as you don't borrow from yourself.
In this chapter
- Qualified and nonqualified plans
- SEP and SIMPLE plans
- Contributions, limits and self-employed math
- Nondiscrimination, coverage and top-heavy rules
- Prohibited transactions
- Reporting requirements
This chapter has 6 lessons and 58 practice MCQs with explanations, plus flashcards and a recall sheet.
What this chapter covers
- Qualified and nonqualified plans
- SEP and SIMPLE
- contribution and deduction limits
- self-employed math
- nondiscrimination
- prohibited transactions
- Form 5500