We partner with advisors who provide financial and tax consulting for these executives. In the past, these executives have contributed to SEPs based on their side income, but contributions were maxing out at $53,000. A OnePersonPlus defined benefit plan allows the highest retirement plan contributions for individuals with this type of self-employment income.
Donald, age 65, has had board income since 2004. He maxed out his SEP contribution each year and wanted to do more. In 2014, his advisor helped him open a Defined Benefit Plan:
Susan, age 56, has $150,000 in sole proprietor income for the past several years from Board of Director fees and speeches (after paying self-employment taxes) and plans to roll off the Board at age 62. We designed Susan a defined benefit plan for six years.