Retirement Account for S Corp Owner
What kind of retirement plan or IRA would be best for the young owner of an S Corp with two employees. He does not want to contribute anything for them. He is starting off and probably could put away 3 – 4 thousand a year at most. Filing jointly, income of around $80,000.
Would he just open a Traditional IRA?
Permalink Submitted by mk foss on Wed, 2014-03-12 01:09
The only way that an S Corp owner can fund his own retirement without contributing anything for employees is to use a Traditional IRA. The S Corp will have to pay him a salary of at least the amount of the IRA contribution because S Corp earnings are not “earned income” for a retirement contribution.