Qualified plans remain one of the last, legitimate mechanisms for closely-held business owners to generate deductions. Even then, some closely-held business owners would like to generate more than a 401k or traditional pension plan may allow.
What Are the Potential Benefits?
- Guaranteed retirement income
- All earnings tax deferred during accumulation
- Deductions in excess of $300,000 depending on demographics
- A valuable employee benefit
- Typically exempt from creditors
- Can still be deducted in the 2023 tax years if the return is not filed...
Who Are the Ideal Candidates?
- Closely-held businesses with less than 50 employees
- Stable, well-established income
- Intent to maintain for 5 years or more
What Are the Key Considerations?
- Feasibility is based heavily on the company’s census
- The plan must meet ERISA non-discrimination rules, but tax savings may be sufficient to offset employee participation costs during the accumulation phase
- Income from the plan will eventually be taxed, but earnings will compound income tax free until distributed
What Are the Next Steps?
- Provide a detailed census (available upon request) for a complimentary review
- Implement plan by due date of business income tax return, as extended
If you are interested in taking advantage of this opportunity to reduce your taxes and secure your retirement, please contact our insurance advisor, Tony Sardis. We can help you design and implement a customized plan that suits your needs and goals. Don’t miss this chance to save money and prepare for your future with a tax-advantaged insurance strategy.
Contact Us
For more information on this topic, please contact Withum Insurance Advisors.
