Self employed and retirement

AlmaD10 — Thu, 15 Jul 2021 19:43:42 GMT

I am 55 yrs old and was let go of my job in 2020 due to Covid. I am now stating my own business as an LLC. How does the new retirement laws impact me in terms of filing as an LLC?

Re: Self employed and retirement

VEpling2 — Thu, 15 Jul 2021 20:58:30 GMT

The new retirement laws will not really impact you as a self-employed individual. Most of the new laws apply equally to employees and to self-employed individuals.

For example, the age limit for requiring distributions from your accounts was raised. The age limit for being able to contribute to an IRA was eliminated. You can now take an early withdrawal without paying the penalty to pay for the birth of a child or adopting a child. All of these provisions apply equally to someone who is self-employed and someone who is an employee.

There are a couple of areas that may apply to you if your LLC has employees and you offer retirement benefits to them. First, part time employees are now eligible for retirement benefits. If your LLC has part-time employees, you may need to offer retirement benefits to them. More beneficial though are the credits to help small businesses offer retirement benefits to their employees. If you do not have employees, then neither of these would apply to your LLC.

Re: Self employed and retirement

AlmaD10 — Thu, 15 Jul 2021 22:46:09 GMT

Thank you for the detailed and clear response to my question. Your professional feedback was extremely helpful. Your hired! 😀

topic Self employed and retirement in Retirement tax questions

Self employed and retirement

Re: Self employed and retirement

Re: Self employed and retirement