CLIENT OF THE WEEK:
From Commercial Development to Secure Retirement
Read More >
Maximum contribution and tax deduction
Business strategy consultant age 53, set up an S-Corp for his solo practice. He wants to grow his retirement assets quickly and reduce his tax liabilities. He pays himself $360,000 in W2 income.
OnePersonPlus Defined Benefit plan for 10 years, combined with a OnePerson(k).
Defined Benefit Only:
2026 Business Contribution: $230,100
Tax Savings @ 37%*: $85,135
Defined Benefit + 401(k):
2025 Business Contribution: $284,200
Tax Savings @ 37%*: $105,150
Projected Defined Benefit Only Accumulation: $3.16 million in 10 years
* Assumes estimated 31% federal and 6% state tax rates. This example is based on specific assumptions and is used for illustrative purposes only. In addition to the information contained in the example provided, approximations are based on a 5.5% nominal investment growth rate. Number of years of savings equals retirement age minus current age in whole number of years. This assumes no loans or withdrawals are taken throughout the current age to retirement age.
CLIENT OF THE WEEK:
From Commercial Development to Secure Retirement
Read More >
* 10-year permanency requirement applies unless there’s a valid business reason when terminating prior to 10 years. Please consult with your tax advisor regarding your individual situation.
Architect• Attorney• Consultant• Contractor• Entrepreneur• Financial Planner• Graphic Designer• Independent Corporate Director• Independent Insurance Agent• Manufacturer’s Rep• Mortgage Broker• Real Estate Agent• Software Developer• Writers•