I recommend everyone set up a Roth IRA in 2022 and, if you own a small business, consider a SEP IRA.
A Roth IRA allows you to make after-tax contributions. Unlike a traditional IRA, Roth IRA contributions are not tax deductible but, when you make withdrawals in retirement, your Roth IRAs are not taxable. Contributions must be made by April 15th of each tax year.
A SEP IRA (self-employed pension plan) is for small businesses with one or more employees. SEP IRAs allow you to make tax-deferred, tax-deductible contributions up to 25% of each employee’s net income. Contributions can be made up to the filing deadline for the employer’s tax return which includes extensions.
Every business owner should have a bookkeeping system in place. The benefits of having a clean set up “books” can’t be overstated. Whether you are applying for a business loan or preparing your taxes, everything is easier and more accurate with a Profit and Loss Statement and Balance Sheet (books).