A Retirement Plan For Business Owners
And Professionals
The PLUS PLAN is an asset-protected retirement plan that allows business owners and professionals in private practice to contribute $100,000 or more per year on a tax deductible (i.e., pre-tax) basis. Funds in the PLUS PLAN also grow tax-deferred. This can equate to a contribution that is three-to-six times greater than a traditional 401(k)/profit sharing plan or SEP contribution.
In fact, depending on the situation, an owner or professional could make a tax-deductible contribution into the PLUS PLAN for his or herself of $300,000 per year or more. And again, the assets contributed to and maintained in the PLUS PLAN are asset-protected (in NC and SC) and grow tax-deferred.
Here are two real life examples:
Maximizing Deductions
Bob is 52 years old and expects to have W-2 income of at least $375,000 in his business this year and until he retires in 10 years. By establishing the PLUS PLAN, he can contribute and take a tax deduction of $235,000 (or less if he chooses). By adding a 401(k), Bob could contribute an additional $34,000 for a total deduction for 2008 of $269,000. That is more than 5 times what he could contribute in a SEP or profit-sharing/401(k), and the plan is also asset protected.
A Short Window until Retirement
Michael, age 60, is earning in excess of $525,000 from his dental practice. He’d like to retire at age 65. He is finally finished with his children’s college expenses and he realizes that he must save as much as possible, but he is unsure how to meet his goal with just a $46,000 per year SEP contribution. He sets up the PLUS PLAN and makes $324,536 in tax-deductible contributions each year for 5 years. His tax savings each year are $123,324. His plan is also asset protected.
- To catch up on retirement funding
- To optimize asset protection
- To maximize tax deductions
To learn more about the PLUS PLAN, contact us or call us at 704-372-5520.
