For 2018 the maximum IRA is capped at $5,500 per individual, $6,500 if over age 50. But did you know if you save more than the maximum, you're penalized 6% per year until you reduce the overage! But for those that participate in a 401K or employer-sponsored plan can contribute up to $18,500. If you over pay in your 401K, you have until April 15 of the following year to remove it, if not, IRS will tax the excess the year it occurred plus on the access once you remove it. (See IRS rules pertaining to contributions)
Here a few key points regarding taxes you should know:
1) Hire the right CPA / Accountant!
2) Keep Adequate records!
3) Understand the difference between NET income and GROSS income!
4) Separate personal expenses from your business expenses!
5) Correctly classify your business!
6)Take advantage of capitalization rules!
Always seek the advice of your tax consultant or attorney when evaluation your tax situation, but when it comes to funding your growth, covering payroll or updating equipment or buying inventory, we are here to help. Simple application, quick decision, fast funding!
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