Paul Sullivan writes this week in his Wealth Matters column about a defined-benefit plan aimed at small-business owners in their 50s who have saved little for retirement. The plan allows them to make annual contributions of as much as $255,000. The owners can then deduct that money as a business expense, resulting in a significant tax savings.
The plan works only if the business owner has a lot of money to put aside each year. But it certainly deals with an issue affecting a lot of people in their 50s and 60s who have not put aside a lot of money for retirement and are trying to figure out ways to catch up.
If you are among those people, what are your retirement saving strategies? Or are you simply planning to work a lot longer?
Article source: http://bucks.blogs.nytimes.com/2012/11/30/catching-up-on-retirement-savings/?partner=rss&emc=rss
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