On this episode of Adam Talks, Adam Bergman, Esq. discusses massive tax deductions you may still receive for the 2023 taxable year if you are self-employed and have yet to file your taxes.
MASSIVE Tax Deduction Still Available For 2023
On this week’s episode, tax attorney Adam Bergman discusses the availability of significant income tax deductions for the 2023 taxable year, even though April 15, 2024 (Tax Day), has passed. He focuses on the benefits of setting up a Solo 401(k) for self-employed individuals or small business owners without full-time employees, and highlights the flexibility of contributions to a Solo 401(k) and explains the eligibility rules for maximizing tax deductions.
Bergman breaks down the information based on different types of businesses, starting with sole proprietors and single-member LLCs. For these entities, setting up a Solo 401(k) for the 2023 taxable year can allow contributions of up to $66,000 or $73,500 for those at least 50 years old. By utilizing employee deferrals and profit-sharing options, individuals can maximize their tax deductions based on their income.
Bergman also discusses tax strategies for partnerships, C corporations, and S corporations, emphasizing the differences in contribution rules and deadlines for each entity type. He explains how profit-sharing contributions can still be made even after certain deadlines have passed, providing additional opportunities for tax deductions. Additionally, he mentions the availability of a $500 tax credit for setting up a Solo 401(k) with auto-enrollment, highlighting the value of tax credits over deductions.
Furthermore, Bergman touches on the benefits of Solo 401(k) plans, such as the ability to invest in alternative assets, access a Mega Backdoor Roth option, and leverage account values for various purposes. He underscores the asset and creditor protection offered by a 401(k) compared to an IRA, making a compelling case for individuals to consider setting up a Solo 401(k) for long-term wealth accumulation.
In conclusion, Bergman encourages listeners to take advantage of the remaining tax deductions for the 2023 taxable year by setting up a Solo 401(k) if eligible. He emphasizes the potential for tax-free wealth accumulation through strategic retirement planning and underscores the importance of consistent contributions and patience in building a financially secure future. Bergman expresses confidence in the benefits of self-directed retirement accounts and alternative assets, positioning them as key tools for achieving long-term financial success.
