ROADMAP FOR BUSINESS OWNERS
Am I a “Business Owner”?
In this “gig” economy many people who work independently don’t think of themselves as business owners. Are you a consultant or contractor? A successful author or actor with royalties or residuals? Are you paid for serving on a board of directors?
You are considered a “business owner” and eligible for these plans if you have earned income that is reported as Net Profit on your Schedule C and is subject to self-employment tax. This is income from work you are doing even if this is part time, secondary income. And, if you own a corporation, your W-2 income is considered compensation for small business retirement plans.
LEARN MORE ABOUT ELIGIBLE INCOME
Which Retirement Plan is Right for Me?
Individuals with self-employment income and owners of a 1-10 person businesses, have several options including: SEP-IRA, SIMPLE, OnePerson (k), 401(k), Defined Benefit, and Cash Balance plans.
Find out which plan is right for you
Answer 3 quick questions to discover which retirement plan is right for you
Why High Income Business Owners Open Our Defined Benefit and Cash Balance Plans
Our clients report overwhelming that “current year tax savings” is the top reason they like their Defined Benefit plans. By making large tax-deductible contributions each year, clients keep more of their earnings. A lot more. So, retirement wealth accumulates much faster.
OnePersonPlus and OwnersPlus were designed specifically to be the easiest, most streamlined Defined Benefit plans to open and maintain. Dedicated DB provides all of the services needed to open a plan, and to make sure that you are making the correct contributions, on time, and staying compliant with all IRS regulations.
Our retirement plans allow you to choose the investments you want: mutual funds, annuities, bonds, equities, or any other marketable securities.
Advantages of OnePersonPlus and OwnersPlus Plans:
- You can save and defer taxes on double or triple what you could save in a SEP or 401(k)
- Depending on your age, years of service, and business type, contributions could be as high as 50-80% of your compensation.
- If you are in your 50’s or 60’s and haven’t saved enough, these plans may allow you to increase your contributions for the next 5-10 years, turbo-charging your retirement wealth so you can retire earlier.
- Secondary income from a side business or spouse’s business can be used to fund a plan.
- Since you are required to contribute annually, these plans support a savings discipline that helps you grow your retirement reliably each year.
- Investments grow tax-deferred building wealth faster
- Retirement assets generally are rolled over to an IRA or other defined contribution plan at retirement (or at plan termination) and continue to grow tax deferred until withdrawn.
Getting Started with a Defined Benefit or Cash Balance
2
Talk to Dedicated DB consultant to adjust plan to meet your objectives
Talk to Dedicated DB consultant to adjust plan to meet your objectives
3
Complete Questionnaire & Send Payment
Complete Questionnaire & Send Payment
4
Sign Plan Documents
Sign Plan Documents
5
Open Investment Account
Open Investment Account Business Owner Resources
CLIENT OF THE WEEK: Official Switches Retirement Plan
SECRETS OF THE SELF MADE