Question

I’ve got well over half of my liquid cash sitting in a business savings account, doing nothing but paying quarterly estimated taxes with plenty left over. Are there any negative tax implications to throwing the surplus into my Betterment cash reserve? Obviously wouldn’t think I could put it in a regular stock account.  

Answer 1

If you do so via a disbursement, there may be tax implications. Just depends on how you’re structured. I transfer our tax payments into a high interest account while it sits around waiting to pay taxes. The math works out in our case

Comments

@pamella2 I do this too

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@pamella2 not sure what you mean by via a disbursement. I’m 1099 and put 25% of each check in a savings acct strictly for taxes. Sounds like we’re on the same page about letting it make some $