Self-Employed Retirement Planning: Do You Need Recordkeeping Services?
If you operate a business out of your home or a small office, you may open a self-employed retirement savings plan, or nontraditional 401(K), to safeguard your future. Although a retirement savings plan is an excellent way to prepare for your future, you must maintain good records of your plan for it to be successful. In this case, you want to obtain recordkeeping services from a financial planner. Learn why you need recordkeeping services for your retirement savings plan below.
Why Do You Need Retirement Recordkeeping Services?
According to the Internal Revenue Service, or IRS, recordkeeping is one of the most important tasks small businesses and self-employed individuals can do today. Recordkeeping allows you to obtain, store, and maintain records of your company's expenses, earnings, and other financial transactions throughout the year. If you own a retirement savings plan, recordkeeping can be beneficial for your business now and your retirement in the future.
You can keep records of your retirement plan transactions on a USB device, in a computer program, or in a traditional accounting book. However, your records must be accurate and precise. If you forget to record any of your transactions during the year, it may come back to hurt you in the future.
You can avoid issues with your retirement savings plan records by asking a financial advisor to assist you with it.
How Can a Financial Planner Help You?
A financial advisor will need to obtain access to your current 401(K) savings plan. An advisor can go over your retirement savings plan to see if it contains everything you need to retire successfully in the future, including your investments, financial statements, contributions, and other information. If your retirement plan lacks the information above, an advisor can help you obtain or secure it.
After an advisor completes the actions above, they'll maintain or manage your savings plan. An advisor will generally provide you with regular reports or account statements of your plan. The reports or statements can help you manage your investments and expenses during the year. You can also use the reports and statements to complete your business taxes at the end of the year.
If you find any problems with your reports or statements, inform a financial advisor immediately. An advisor can go over the reports or statements and correct anything that appears out of place or incorrect for you.
Learn how you can keep records of your self-employment retirement savings plan by contacting a retirement planning advisor today.
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