Limited Liability Company Retirement Plan
The board of directors must have a retirement plan put in place in a limited liability company. There are quite a few options for financial planning and retirement options available for them today. The rules vary to some extent when it comes to a limited liability company.
The normal rule is that traders cannot have normal retirement plans and they are prohibited form the common rules depending on their income. However, they can still contribute to IRA or 401K, or Keogh, and several others like SEP, Roth, and SIMPLE. There are other profit sharing plans too. If a director is planning to retire from the LLC then they should plan their retirement when they were forming the LLC itself. If they did not do it, they can start doing it even while they are working with the LLC.
The retirement plan that they undertake can be a tax deferred plan or a non deductible income tax free plan like Roth for example. You can open a marginal account with any of the brokerage firms and also control the account at your own choice. The LLC can buy or sell short stocks using this account.
In an LLC unlike a partnership firm the trader or the owner can also become an employee. In this case the partner or the director can choose to draw a salary and have tax deducted like any other employee and get regular tax benefits along with long term retirement plan. They can choose any of the plans that are available to the regular people without any exclusion.
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