3 Ways For Self-Employed Workers to Save Money On Taxes

Last year, taxes went up for federal income, payroll, and capital gain; while deductions for self-employed individuals went down drastically for those making more than $200,000 in a year. This was a rude surprise for millions. Nobody wants to have to lose their hard-earned money unnecessarily.

Reported by Simi Afroza Mira

If you are one of these individuals that makes an annual salary of six figures or more, then you will value this important advice on how you can save money.

Here are tips on benefit plans that can help you save money on taxes:

Set up an IRS Plan

By setting up an IRS-approved retirement plan, you can save thousands of dollars, and at the same time, you can save up for your retirement. There are many plans out there, so make sure you do some research before choosing a plan to make sure it is the best one for you. In order to take full advantage of this, you must pick and set up your IRS-approved plan by December 31, 2014.

Check into a Defined Benefit Plan

A Defined Benefit plan (DB plan) allows you to receive the highest amount of savings. These once were only used by large employers, but now anybody can use them. These plans are especially used by individuals that make a large sum of money and/or those who are self-employed, such as doctors, consultants, small business owners, and more. By deciding on a defined benefit plan, you can save tens of thousands more than with any other IRS-approved plan. Defined benefit plans are also a great way for smaller businesses, attorneys, contractors, entertainers, and real estate agents to save money for the future. You can roll your defined benefit plans into different plans if you decide to in the future.

Get a Financial Advisor

Financial advisors live to help others save and invest their money. They went to college and have learned exactly how to keep their client’s hard-earned money in the client’s pocket. They will be able to advise you with how to receive the best IRS-approved retirement plan.

So, do not hesitate because you do not understand the complicated workings of retirement plans. Do some research or get a financial advisor to start helping you save today. Act fast, because December 31, 2014 is just one week away.

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