As a business owner, hopefully you are operating in the black. In the midst of all your responsibilities, obligations and duties necessary to keep your business operating, you may be overlooking an opportunity to provide for yourself and your family when retirement rolls around.

Standard IRA’s have been around for many years. If you are 49 years old or younger, you have until April 15, 2008 to set one up and deduct $4,000 from your taxable income. If you are 50 or older, Congress allows us to deduct $5,000. (For tax year 2008, the amounts increase to $5,000 and $6,000 respectively.) For those taxpayer’s with a tax rate of 10%, 15%, or 25%, you can usually cut your tax bill by a significant amount.

Married couples, filing jointly, can have an IRA account for each partner, with the same contribution amounts as above, even if one earns less than the IRA limits. If you have the income, and can come up with the cash, you can cut your tax liability.

As an alternative to the standard IRA, we now have a Roth IRA option. The contribution rules are similar, but this IRA is funded by after tax funds. You may want to cut your taxes now and question why someone would choose this option. The answer is very simple. Upon retirement, ALL distributions from a Roth IRA are free of Federal income tax. If your investments have hit the jackpot, isn’t it a great country where we can enjoy our retirement without worrying about income taxes.

For more information, please visit http://www.irs.gov and do a search under traditional or Roth IRAs.

(Note: This information is based on current IRS publications. Consult your Accountant or CPA to verify eligibility and limits for your particular circumstances.)