SERVICES
Defined Benefit Plans
Not for the 1% or the large business owner
They have their own group of political advocates, accountants and lawyers.
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Are you paying too much in taxes?
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Would you like to increase your PRE-TAX retirement funding?
Example 1: Real Estate Agent or Mortgage Broker. Schedule C comp: $450k
Traditional Method
SEP IRA Contribution: $ 57k
Taxable Income: $393k
Fed & State Taxes: $151k
Defined Benefit Method
Flexible Plan Contribution: $250k
Taxable income: $200k
Fed & State Taxes: $ 55k
TAX SAVINGS: $96k
Additional Pre-Tax Retirement Savings: $193k
All figures including compensation, taxable income and taxes are estimates and for illustrative purposes only. Figures derived using an online income tax calculator.
Example 2: Brain Surgeon / House Flipper. Schedule C comp: $ 1.2MM
Traditional Method
SEP IRA Contribution: $ 57k
Taxable Income: $ 1.143MM
Fed & State Taxes: $ 526k
Defined Benefit Method
Plan Contribution: $ 500k
Taxable income: $ 700k
Fed & State Taxes: $ 243k
TAX SAVINGS: $253k
Additional Pre-Tax Retirement Savings: $443k
2020 tax year IRS exception. Due to Covid-19, you have until you file your taxes to implement a new defined benefit plan or adjust an existing plan to increase your 2020 deductions. If you filed an extension, would like to reduce your tax burden and add to your retirement, complete the information request form.
Example 3: 2nd Income as a Therapist or Consultant Schedule C comp: $100k
Traditional Method
SEP IRA Contribution: $ 25k
Taxable Income: $ 75k
Fed & State Taxes: $ 35k
TAX SAVINGS: $ 35k
Defined Benefit Method
Plan Contribution: $ 100k
Taxable income: $ 0k
Fed & State Taxes: $ 0k
Additional Retirement Savings: $ 75k