Client of the Week

Director Puts a Spotlight on His Retirement

A 48-year-old Sole Proprietor in the entertainment industry, reporting $300,000 on his schedule C, can shelter $176,000 into an individual Defined Benefit plan, reducing his Adjusted Gross Income down to $104,000 after accounting for $12,000 in self-employment taxes. This provides a tax savings of $65,000 per year, assuming a tax rate of 37%. If this indie film director funds the plan through its life, he will have a total over $1.2 million dollars.

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