by H2R CPA Team
Because qualified retirement plan contributions lower the taxable income of business owners of passthrough entities (sole proprietorships, partnerships, S corporations, and LLCs), increasing contributions can qualify business owners for additional tax deductions under the Tax Cuts and Jobs Act that they would not otherwise have been eligible to receive, such as the new qualified business income (QBI) deduction (Sec. 199A).
See article below from the AICPA website for details and contact H2R CPA at 412-391-2920 or firstname.lastname@example.org with any questions you may have.
Why small business owners should have a qualified retirement plan