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After taxes, a business is left with their after-tax dollars. Most select to turn them into after-tax contributions. It is made up of the money deposited into annuity, or a retirement account, after federal and state taxes have been paid on it. A Los Angeles business sales associate assists in looking at after-tax retirement plans.
Though numerous available retirement plans are pre-tax dollar plans, there are some that allow for after-tax dollars as well. The difference between the two is that pre-tax plans reduce the amount of taxable income available because it is contributed to the plan. After-tax dollars contributed to a plan do not lower taxable income amount, but the advantages make it worthwhile to checkout.
The most popular program for after-tax dollars is the Roth IRA program. There is a key advantage of this plan even though it does not decrease taxable income on filed returns. The benefit lies in the fact that money can be withdrawn at any time, even before the age of 59.5, and no taxes have to be paid on it.
401(k) plans are also quite popular. Though mostly associated with pre-tax dollars, individuals can put in after-tax dollars also. This action would be set up through an administrator so a separation between the two types of money is distinguished.
There is an advantage to after-tax dollars in a 401(k). No taxes are paid on the money. This is highly advantageous when it comes to withdrawing the money at retirement.
The last plan discussed by a Los Angeles business sales professional is a traditional IRA plan. Both pre-tax and after-tax can be accepted. Individuals need to record these on their own and notify the IRS of the total in after-tax dollars in the plan.
Though numerous available retirement plans are pre-tax dollar plans, there are some that allow for after-tax dollars as well. The difference between the two is that pre-tax plans reduce the amount of taxable income available because it is contributed to the plan. After-tax dollars contributed to a plan do not lower taxable income amount, but the advantages make it worthwhile to checkout.
The most popular program for after-tax dollars is the Roth IRA program. There is a key advantage of this plan even though it does not decrease taxable income on filed returns. The benefit lies in the fact that money can be withdrawn at any time, even before the age of 59.5, and no taxes have to be paid on it.
401(k) plans are also quite popular. Though mostly associated with pre-tax dollars, individuals can put in after-tax dollars also. This action would be set up through an administrator so a separation between the two types of money is distinguished.
There is an advantage to after-tax dollars in a 401(k). No taxes are paid on the money. This is highly advantageous when it comes to withdrawing the money at retirement.
The last plan discussed by a Los Angeles business sales professional is a traditional IRA plan. Both pre-tax and after-tax can be accepted. Individuals need to record these on their own and notify the IRS of the total in after-tax dollars in the plan.
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Looking for more info on how to get after-tax dollars for your Company ? Get the low down on how a Los Angeles Business Sales Broker can help on http://www.henryweaks.com
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