Balancing Retirement Goals & S Corp Self-Employment Tax Savings

I often see business owners navigating the desire to maximize retirement contributions while also leveraging S corp status for self-employment tax savings. It's a delicate balance because higher retirement contributions are often tied to higher W-2 income – the very income an S corp election aims to reduce for self-employment tax efficiency.

This creates a crucial question: What's your priority right? Is it maximizing retirement savings potential, or minimizing your current tax liability?

Once those priorities are determined, we can work towards the right balance for you and your financial goals.

Happy tax planning!