Self-Employed Professionals, Take Note. Here’s How You Can Supercharge Your Retirement
3rd Feb 2021
If you’re self employed and interested in receiving a $230,000 tax deduction, you will want to read on. That’s the hook in William Baldwin’s latest Forbes article Self Employed? Maybe You Should Supercharge Your Retirement. The piece adeptly breaks down the complexities and advantages of a Defined Benefit plan, which is a tax-advantaged retirement plan that can benefit high earning self-employed individuals.
The article examines the process of opening a Defined Benefit plan (using Dedicated DB as an illustrative TPA), the requirements and the costs. A high-contribution retirement plan can be a boon for small business owners who are “earning a lot more money then they need to live on.” The tax benefit can be enormous.
Baldwin shares examples of typical client situations that show annual costs, the potential tax savings, the 401(k) feature as well as the final projected fixed payout at retirement.
Whether you’re a sole proprietor, LLC or corporation, you may qualify for a huge tax deduction from your business income. You’ll want to read the article to see if this retirement strategy could be a good fit for you.