If you are a business owner or receive self-employment income as an independent contractor, you may be able to eliminate current taxes on a significant portion of your income and accumulate greater wealth for yourself and your family.
Unlike certain, more traditional retirement plans such as 401(k)s, SEPs and IRAs, a cash balance pension plan can allow for greater benefits and tax deductible contributions for you. In certain circumstances, independent contractors may be able to save as much as 50%-90% of their income.
Here are key factors in considering a cash balance pension plan:
- Do you wish to save more than the limits under other tax-advantaged retirement plans (typically $58,000 or about 25% of total eligible pay per year, if less)?
- Are you looking to maximize disparity in employer provided benefits between owners and staff?
- Are you anticipating ongoing income and the need for tax savings in future years?
If the answer to any of these questions is yes, a cash balance plan may be the solution to meet your retirement saving objectives. Please contact Neil Shore or Kathy Tompkins to discuss your unique situation.
Once we receive your basic employee data (via this form), we will prepare customized options for your business. We would then work with you to tweak the retirement plan design to meet your more precise objectives.