If you’re a successful business owner, there’s a question I frequently ask: Are you keeping as much of your income as possible—or could you be sending too much of it to the IRS?
There is a powerful, completely legal strategy that allows business owners to Potentially reduce to $428,000 or more of taxable income each year—while simultaneously building a strategy for a predictable, lifetime retirement income benefit.
It’s called a Defined Benefit Plan.
Unlike a traditional 401(k), a Defined Benefit Plan is designed for high-earning business owners who want to make very large, above-the-line tax-deductible contributions—often well into the six figures. These plans work like a personal pension, Seeking to redirect money that may have gone to taxes into a retirement plan that you own and control.
Here’s why this strategy can be an attractive feature
First, the tax deduction can be substantial. Depending on your age, income, and business structure, you may be able to deduct up to $428,000 or more per year, which can help reduce your current tax bill.
Second, those tax dollars don’t disappear. They are redirected into a lifetime pension benefit—creating predictable, retirement income, much like the pensions that used to exist for executives and government employees.
Third, this strategy allows you to pursue an increase of retirement wealth each year, far faster than traditional retirement plans alone.
And if you have key employees, a Defined Benefit Plan can also be a notable retention and loyalty tool, helping you reward top talent while seek to strength the long-term stability of your business.
Defined Benefit Plans are highly specialized. Most financial advisors are not trained to design or manage them properly. They require careful coordination, precise calculations, ongoing compliance, and professional oversight.
That’s where we come in.
We specialize in tax-smart retirement strategies for business owners. We design custom Defined Benefit Plans tailored to your business, handle implementation and compliance, and aim to ensure the plan continues to work efficiently year after year.
If you’re a high-earning business owner, every year you delay advanced planning is another year you may be overpaying the IRS.
A Defined Benefit Plan seeks to transform taxes into guaranteed retirement income, but it must be designed correctly and coordinated with your overall business and tax strategy.
Schedule a no-obligation 5-minute strategy session to determine whether a Defined Benefit Plan may allow you to shelter income while building a personal pension you control.
Let’s find out how much of your income you can could potentially redirect from taxes into long-term wealth—starting this year. Schedule your strategy session today.
Investment advisory and financial planning services are offered through Simplicity Wealth, LLC, an SEC-registered investment adviser. SEC registration does not constitute an endorsement of the firm nor does it indicate that the adviser has attained a particular level of skill or ability. Investing involves the risk of loss. Insurance, Consulting and Education services offered through Heart Financial Group. Heart Financial Group is a separate and unaffiliated entity from Simplicity Wealth. This material is designed to provide general information on the subjects covered. Pursuant to IRS Circular 230, it is not intended to provide specific legal or tax advice and cannot be used to avoid penalties or to promote, market, or recommend any tax plan or arrangement. You are encouraged to consult your personal tax advisor or attorney. This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives.
