Making the Most of IRA Plans

Maximize your business benefits by making the most of IRA plans

Whether your business offers an SEP IRA, SIMPLE IRA or self-directed IRA to its employees, you should understand how IRA distribution within your company can be adjusted to meet your specific needs, enrich the employee-employer relationship, and provide tax credits for expenses rendered in the process.

While offering an IRA leads to better employee satisfaction, your business can also benefit from IRA distribution. Consider the following list to make the most of the benefits entitled to your business by providing IRA plans:

1. Create an IRA investment account that operate on a fiscal-year basis instead of a colander-year basis.

2. Learn how to receive tax deductions for business expenses relating to IRA distribution.

3. Gain a better understanding of your responsibility to employees when dealing with IRA transfers or rollovers.

 

Use non-IRS forms to set up employee IRA plans

Setting up an employee's IRA account using non-IRA forms permits your business to opt for a fiscal-year plan instead of the calendar-year plan required when using IRS forms. All IRA providers offer IRS-equivalent forms you may fill out to set up an SEP IRA retirement plan to operate on a fiscal year.
Try: T. Rowe Price can assist your business in setting up an employee's IRA plan. The company operates its services using the fiscal year format, and you can download appropriate forms from their website prior to obtaining the company's services. Also find IRA setup resources available at Charles Schwab Corporate Services.

Receive tax deductions for business expenses incurred setting up SEP IRA accounts

Following implementation of individual retirement accounts at your business, you may be able to claim a tax credit for part of the ordinary and necessary costs of starting up SEP IRA accounts. Obtain IRA information online to see if your SEP contributions are tax deductible business expenses. If so, print out and complete the appropriate IRS forms.
Try: Check out an article at NuWire Investor to gain a better understanding of tax deductions your business may qualify for as an IRA retirement plan provider. Download and complete Form 8881 provided by the Internal Revenue Service to receive any tax deductions to which you are entitled.

Understand your responsibility as a business owner when dealing with a rollover IRA or transfer

Take into account your responsibility as an employer to become responsible for a new employee's IRA investments. You may also find it to be beneficial to learn appropriate exit strategies to ensure you cut any loses but keep employees satisfied.
Try: Take a look at Research401k.com to understand the difference between rollover IRAs and IRA transfers. You can also purchase a DVD from Crescendo Interactive highlighting exit strategies for business owners dealing with IRA rollovers.

 

• Always seek advice from the IRS or your tax advisor if you are unsure about IRA investment accounts guidelines, rules and problems.

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