FAQ
1. Are you earning substantially more than you need to maintain your lifestyle? Are you paying excess income taxes every year without enough deductions to reduce this liability?
If the answer if yes, then you may be a candidate to create a self directed defined benefit pension plan for yourself. This plan can help you make substantially larger contributions (as much as $100-300k++)* versus the standard plans you may be working with currently. If you only have a 401k or SEP plan, you need to educate yourself about the other type of pension plans available for you. Our team of specialists will work with your advisors to determine if you qualify for this type of plan.
2. Are there any type of plans that would enable me and/or my partners to make larger retirement plan contributions than what is currently allowed through the traditional 401k/profit sharing/new comparability plan designs I’ve seen in the past. I have employees, which I believe in providing an adequate benefits package to, but continuously run into the IRS and ERISA restrictions and roadblocks that would cost me a fortune to fund my employees as well. I am currently providing and excellent benefits package for my employees but I want to know – isn’t there a way to make the type of retirement plan contributions suitable for us without overcompensating my employees?
If you believe in providing benefits to your employees but you want the bulk of the total retirement contribution dollars to weigh in your favor, then our team of specialists can work with your advisors in designing a pension plan that can enable you to make the safe harbor 3% retirement plan contribution for the employees while making contributions of $40-$300k+++ for you and/or your partners. If this is what you are looking for then contact us today.
3. Would you like to shelter (tax defer and deduct) more of your excess income to fund benefits for yourself and toward your retirement than you are now doing?
You have options other than the traditional 401k, sep, profit sharing plans, etc.. Our specialists work with you in designing self directed plans that put the control back into your court. Learn more about how our clients learn how to greatly reduce and/or eliminate their tax liability while funding their own retirement plan and reducing their risk of creditors taking away their hard earned money.
4. How much will it cost me to self direct my own pension plan?
Third party administration fees vary by the size and/or complexity of each case but the average case will run anywhere from $1500-$2000 annually plus one time adoption paperwork fees. Remember that each case is designed to meet individual needs so prices do vary.
5. How does it work if I decide to separate myself/partners from my employees for pension purposes?
Following strict IRS and ERISA guidelines, our advanced planning specialists work directly with the tax advisors and business owners in designing a specific benefits package for the employees that will satisfy the separation requirements allowing the owner/partners to design individual benefits for themselves including, but not limited to, self-directed pension plans, medical reimbursement plans, LTC, disability, and severance packages.
6. What are the benefits of going through the effort of separating my employees from me/my partners?
Although it is a process and incurs additional costs to create the acceptable guidelines and systems to separate your employees from the business owner(s), there are many benefits that come with this:
1. Retirement plan contributions from $18k – up to $300k+*
2. The best way to establish exclusive management benefits
3. The best way to establish management authority & control
4. Attract and retain quality employees
5. Control rising employee costs
6. Legal way to create a drug free environment
7. The best way to curtail employee litigation and enforce company policy
7. What is the cost of an analysis of my needs to see if my company qualifies for any of these specialized plans?
There is no cost for the initial evaluation procedure. The time you need to dedicate to the screening procedure is also minimal. The will be a good use of your time to really evaluate your needs, your current tax situation, your estate planning options and possibly an exit strategy from your business.