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I have spent the last two weeks preparing for the IRS.  Unfortunately, I still do a small number of business tax returns (old habits are hard to get away from).  One of my small business tax clients was selected for a full examination (Audit).  I have over over 10 years of experience in completeing tax returns, and this is the first business return that has been selected for an audit.  I guess it was my turn to sit on the hot seat. We had the IRS agents here in the office on Wed. and then we met at the client's business on Thursday for a site evaluation and Q&A session.  I am elated that we made it through the audit without any problems and the client did not have to pay any additional taxes, but as you can imagine it has been a stress that has caused a few nights of restless sleep.  I knew that we had nothing to hide, but you never know where there might be a difference of opinion on deductions.

Since the tax man has been on my mind so much recently, and I know how much taxes impact the small business owner.  I felt that it was time that I loaded up my small business owner listeneres with the tools to stick it to the tax man LEGALLY!

The best tax loop hole out there for small business owners is through retirement savings.  The government recognizes that unless they allow you to save money for retirement the long-term impact on the economy is huge.  This may come as a surprise to many out there.... Small Business owners are the engine of the economy. 

Here are a few facts from the Princeton Review (click here for more information):

** 99% of all employers are small business owners
** 75% of the new jobs created every year come from small business owners
** 96% of all exported goods come from small business owners

So on today's show I am going to discuss the different options a business owner has to lock money away for retirement and lower their taxable income significantly.

A good comparison of the different options is provided on Fidelity's website (click here for more information).

A business owner can consider the following:
SEP-IRA
Self-Employed 401(k) aka Solo 401k
SIMPLE-IRA
Traditional 401(k)

One not mentioned on the Fidelity site (because they do not offer it yet as an option to small business owners) is the ROTH 401(k)

A good source for information on Solo ROTH 401ks is through 401kBrokers.com (click here for more information)

This is one of those shows where I could spend days typing individual notes for each plan type, but I think that the best choice is for me to explain the details directly in the podcast.  So don't cheat and only read the notes and not listen to the audio of the podcast.  This is a time that you will need both.

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BRIAN PRESTON'S "WEALTH REPORT" PRINT NEWSLETTER. For only $29/year, subscribe to a quarterly guide that helps you keep up with the changing investment world. All proceeds directly offset the cost of producing this blog and podcast.