Hey everyone! A reminder to companies still looking for 2025 tax deductions -
Thanks to the SECURE Act, business owners can still adopt a new profit sharing or 401(k) plan for 2025 - right up until your tax filing deadline, including extensions.
That means a calendar-year business could adopt a plan as late as September or October 2026 and still deduct a contribution as if it were made in 2025.
What's on the table for 2025:
- Profit sharing contributions up to 25% of compensation
- Total annual additions capped at $70,000 per participant
- Compensation considered up to $350,000
If your CPA flagged a bigger-than-expected 2025 tax bill, this could still be on the table. Let me know if you have questions or if we can partner with you and your CPA to help put something in place before the deadline.
~ Kelly, CPFA CRPS AIF
kelly.mckay@mckaywealth.com / 206.973.4487
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Kelly McKay
Business Retirement Advisor
McKay Retirement Consultants
Renton WA
(206) 973-4487
kelly.mckay@mckaywealth.com------------------------------