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Small Business Owners & Self-Employed
One of the best ways for a small business owner to build wealth is through a qualified retirement plan. Often called "The World's Best Tax Shelter" contributions are tax-deductible, they accumulate tax-free, and accounts are generally protected from the claims of creditors. Since earnings are not taxed until distributions take place, substantial wealth can be accumulated in qualified accounts.
A variety of plans are available to the business:
The choice of which plan to use depends on desired contribution for the owner, number and compensation level of employees, cost to implement and maintain, flexibility in contribution amounts, and complexity. The SEC has issued a warning about using a variable annuity in a 401(k) plan.
Non-Profit Organizations
One of the most economical benefits that hospitals, schools, churches and government entities can use to retain valuable employees is to offer a 403(b) or 457 plan or both. In 2003 the IRS audited a random sampling of these plans and discovered 100% non-compliance and high expenses for participants. New rules which go into effect on December 31, 2009 will change the landscape for these plans. Plan sponsors have a fiduciary duty to justify the use of variable annuities in a 403(b) or 457 plan.
How We Can Help
Contact Us if you want more information about pension consulting services. Please indicate your specific area of interest, and if you have a preference, the advisor you want to call. |
