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Yes its possible. Talk to your accountant, there is a tax schedule that has to be filed.

I guess I need to call around to more financial advisers. My accountant is one I have to sometimes pry information out of sometimes. On one hand I like that he is so conservative, the other I don't like having to really push to find ways of really utilizing my money.

The one financial adviser I have spoken with keeps wanting to set me up with a simple IRA. When I did question him about whether or not the company could put back money into a retirement package for it's employees, he'd just tell me "well, that's gonna cost your more, the simple IRA is cheap".

For my clients that are one man shops (or have their wife on salary), I usually recommend a Self-Employed 401(k) or as some call them Solo 401(k)s. We usually use Fidelity's since it is easy to set up, no set up fees or annual fees, can buy any investment not just Fidelity's no load funds. If net profits are around $156,000, we can defer around 45,000 of that each year (50,000 if over age 50). Where do they get the money to fund this each year. Any where but usually the business. We find this is much better than just paying yourself a small salary, even though your social security and medicare expenses are higher. Don't forget if you pay more into SS you do get bigger COLA ajusted checks some day. Something to think about.

In your post you said you had an s-corp but never mentioned any employees.

Anyway's, from your question it sounds like you pay yourself and maybe your employees a w-2 income, and then there is money left over that you will either draw or pay as additional w-2 income to yourself.

The simple answer is yes, your corporation can assume all costs regarding a retirement plan, and there are special tax credits for starting a plan for you and your employees.

You will find that if you ask an accountant most will say open a SEP and if you talk with a broker he will say open a SIMPLE. Its best if you talk with an advisor that actually specialized in the area, and doesnt just have the ability to do it.

please feel free to email me at aaron@smithadvisor.com for more info and I can atleast point you in the right direction or tell you what to look for when you are ready. Good luck.

Aaron