Last minute tax shelter setup for 2015

Every year there are a few small business owners who wait until the last few days of December to set up a retirement plan or pension plan that winds up reducing their tax liability by many thousands of dollars at tax filing time in the spring. It takes a few hours work for each plan setup and might cost about $1,000, more or less, to do all of the setup paperwork properly. The difficult part for me is juggling these last-minute requests. The plan documents and investment account setup work must be complete by December 31 in order to get a 2015 tax deduction. The actual plan contribution can be calculated and deposited at a later date in 2016 and can, in fact, be partly funded by the tax savings now allowed by having the new plan in place.

Whatever the reason for waiting so long to ask for help, I have still found that some of these last-minute requests have developed into successful long-term client relationships. So if you are still on the fence, I welcome an end-of-year conversation.


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