Your Work, Your Life, Your Retirement

Congratulations – you’ve built a successful business….
Now, ask yourself, are you also building a successful retirement?

Market losses and volatility, taxes, fees and just confusion over how to best save for retirement means that often business owners are often not doing as much as they could in preparing for a successful retirement.

When you have successful business traditional qualified plans simply do not allow you to put away as much as you would like to. IRS regulations limit your contribution into 401k, SEP and IRA plans. And, if you have employees, you are required to offer the plan to them and a significant percentage of the dollars you are putting aside must go to your employees.

But there is a Solution

You as a successful business owner have the option to fund your own pension. And this can allow you to put away very significant tax deductible contributions to fund your retirement. The option to use a Sec. 412(e)(3) plan, also known as a ‘fully insured defined benefit plan’. These fully insured defined benefit plans offer unique benefits in the retirement planning arena because they can have a much higher tax-deduction limit than most plans. In addition plan contributions can be much higher than in traditional defined benefit plans.

Defined benefit plans, plans that pay a pension for life, are nearly non-existent these days. Most employers that used to offer these plans have moved to offering defined contribution plans such as a 401(k). This has had the effect of moving the burden and risk of preparing for retirement from the employer to the employee. However, in the small business space, the defined benefit plan is alive and well. And, it offers one of the last significant tax savings available to small business owners. For those who qualify, these plans provide significant tax-deductible retirement contributions and significant future retirement income.