Question

I purchased your Business Tax Deductions course and found it as advertised—full of great business tax deduction strategies.

I have one question from Section 42 of the tax course that deals with avoiding penalties when drawing Social Security benefits before full retirement age. Does the money put into the 401(k) count as earnings that can cause the 50-cents-on-the-dollar penalty when 2012 earnings exceed $14,640?

Answer

Yes and no! Here’s the way it works.

The “elective deferral” made by the owner-employee, whether incorporated or not, ... Log in to view full article.