Under the retirement savings contributions credit, an individual may be able to take a tax credit of up to $1,000 ($2,000 if filing jointly) for making eligible contributions to a Solo 401(k) Plan
Miami, FL (PRWEB) March 06, 2013
IRA Financial Group, the leading provider of Solo 401(k) Plans has seen an increasing number of self-employed individuals and small business owners using the retirement savings credit as an incentive to establish a solo 401K Plan in 2013. Under the retirement savings contribution credit, retirement plan participants (including self-employed individuals) who make contributions to their plan may qualify for the retirement savings contribution credit. The maximum contribution eligible for the credit is $2,000. To take the credit, the individual must use IRS Form 8880, Credit for Qualified Retirement Savings Contributions. “Under the retirement savings contributions credit, an individual may be able to take a tax credit of up to $1,000 ($2,000 if filing jointly) for making eligible contributions to a Solo 401(k) Plan,“ stated Adam Bergman, a tax attorney with the IRA Financial Group.
To be eligible for the Credit for Qualified Retirement Savings Contributions
The individual claiming the credit must be: (i) age 18 or older; (ii) not a full-time student;, (iii) not claimed as a dependent on another person’s return; and (iv) with an adjusted gross income not more than: $57,500 if your filing status is married filing jointly (for 2012; $59,000 for 2013), $43,125 if your filing status is head of household (for 2012; $44,250 for 2013), or $28,750 if your filing status is single, married filing separately, or qualifying widow(er) (for 2012; $29,500 for 2013).
“The amount of the credit one can get is based on the contributions made to the solo 401(k) plan and the individual’s credit rate. The credit rate can be as low as 10% or as high as 50%, “ stated Adam Bergman, a tax attorney with the IRA Financial Group. “The Qualified Retirement Savings Contributions credit is applicable to contributions made to the Solo 401(k) Plan and does not include rollover contributions, “ stated Mr. Bergman.
The following example illustrates how the Qualified Retirement Savings Contributions credit works. Tom is self-employed and has a small consulting business. Tom is married and earned $30,000 in 2012. Tom’s wife is unemployed in 2012 and did not have any earnings. Tom contributed $1,000 to his Solo 401(k) Plan in 2012. After deducting his Solo 401(k) Plan contribution, the adjusted gross income shown on his joint return would be $29,000. Tom would be able to claim a 50% credit, $500, for his $1,000 Solo 401(k) Plan contribution. “Many eligible self-employed individuals who qualify for the credit aren't benefiting because they are not aware of the available credit, stated Mr. Bergman.
IRA Financial Group’s self-employed 401(k) Plan was designed to offer investors a diverse and wide array of investment opportunities for their retirement funds. Clients can purchase stocks, mutual funds, precious metals, real estate, and much more. In addition, the Solo 401K Plan account can be opened at any local bank and financial institution, including Fidelity, Scottrade, TD Ameitrade and more . In addition, IRA Financial Group’s Solo 401(k) Plan will allow a self-employed individual or small business owner the ability to defer up to $51,000 ($56,500 for someone over the age of 50), as well as gain the ability to borrow up to $50,000 tax and penalty free and use the loan proceeds for any purpose.
The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.
IRA Financial Group is the market's leading “checkbook control Individual 401(k) Plan Facilitator. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.
To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.