412(i) Defined Benefit Pension Plan Part IV
This is going to be the last segment on 412(i) plans this week. This last part I want to focus on why anyone could use a 412(i) plan. Defined benefit plans in general are a good way to put back money for retirement for business owners. Most business owners spend a healthy chunk of their income over their lifetime putting back into the company to make it grow. With the limitations the IRS puts on contributions to traditional qualified plans such as IRA's, Simple IRA's, 401k's and SEP plans it makes it virtually imposable to stock pile enough money to take advantage of your companies tax right offs. This is where Defined benefit plans come into play. Even a traditional DB plan lets you put away more than any other qualified plan. Namely the 412(i) which is what I like to call a DB plan on steroids. You get to write off sums up to in some cases $375k-$400k a year. Now that is some serious write off's.
Not everyone is suited for a 412(i), but it never hurts just to check it out. Who knows maybe your company could save hundreds of thousands of dollars a year in taxes that you put into your own retirement. I know I would rather pay $200k to my qualified plan other than to uncle Sam............ Yeah, I know I closed using rhyme. If you would want someone to give you a quote you can go to www.annuitynews.net and find an advisor in your area or email me at dustin@capitalcareamerica.com and I will help you find an advisor. Thanks for reading.
Dustin Weaver ACS PCS AAPA
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