INCREASE BUSINESS PROFITS:
As a business owner, you concentrate on how to minimize your tax liability while increasing your business profit and maximizing your retirement at the same time. Sometimes, these objectives seem to conflict.
You work hard for your money. You work hard on your business. Do you feel perhaps you pay more in taxes than you need to? Did you know you can reduce your business taxes and increase your business profits at the same time by having your money grow tax deferred in a qualified pension plan? By implementing a defined benefit plan, you can.
REDUCE TAX LIABILITY
Every dollar you contribute to a defined benefit plan creates a tax deduction for your business. By allocating your business funds to a defined benefit plan you are able to reduce taxes and build a solid retirement for yourself and your employees. The following chart illustrates the maximum contributions to three types of qualified plans:
The chart above shows the highest first year contributions allowable in three different types of retirement plans. The contributions to the 412(e) Plan are significantly higher in all cases shown above. In fact, the 412(e) Plan’s maximum contribution can be almost $360,000 higher than the maximum contributions permitted in the traditional profit sharing plan for the 60 year old.