2023 update: Under the new Biden tax plans, it is more important than ever to save on taxes. Whether you’re a sole proprietor, LLC or corporation, you may qualify for a huge tax deduction from your business income — $50,000 to $200,000 or more each year. We understand the challenges of running a small business. Give us a call, we can help add tax alpha. Our Advisor fees are 0.6% on the first $1M and they decline above $1M. You don’t have to pay 1%+ to work with a financial advisor.

A Defined Benefit plan is intended to help meet the tax savings and retirement income needs of people who are:

• ✓ Owner-only, owner + spouse or family business
• ✓ 40 years old or older
• ✓ Able to contribute a significant amount of income for 3 years or longer
• Typical Occupations of Plan Owners
• Consultant, Corporate Director, Dentist, Engineer, Farmer, Franchisee, Insurance Agent, Online Entrepreneur, Physician, Real Estate Agent, Sales Rep, Software Developer
• We work with your CPA to refine the details.
• Plans must be opened by the end of your fiscal year, usually 12/31

Save on Taxes Each Year: IRS tax code allows qualifying small business owners to make significant contributions to retirement plans each year—potentially as much as $100,000 or more—depending on certain factors such as age and earned income. Contributions are tax-deductible and may provide tens of thousands of dollars in tax savings each year that could go toward retirement.

• Your contributions may be invested in low-cost mutual funds, ETF’s, bonds, equities, or any other marketable securities that you and your financial advisor select. Investments with low volatility are generally recommended for DB plans.
• Contributions could be as high as 50-80% of compensation depending on your age, years of service, and business type
• You may add a 401k) and contribute up to $41,800 more when you want larger deductions, subject to applicable IRS limitations
• Contributions are required each year; the plan will offer a range of contributions in year two and beyond
• At retirement or plan termination, you can roll assets into an IRA where they continue to grow tax-deferred until withdrawn
• Reduces income to allow certain entities to take potentially up to 20% deduction on qualified business income (we have a checklist to see if you qualify for the QBI deduction)

 

Disclosures: Past performance may not be indicative of future results.  Moreover, no current or prospective investor should assume that future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in any general informational materials or educational sessions, will be profitable or equal any corresponding indicated historical performance level(s).  Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for an investor’s retirement portfolio.  Moreover, you should not assume that any discussion or information contained in this website serves as the receipt of, or as a substitute for, personalized investment advice from Integrity Investment Advisors, LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing.

Internal Revenue Service (IRS) rules of practice require us to inform you that any tax implications (we are not CPA’s and suggest that you seek professional tax advice) included in this communication is not intended to be used, and cannot be used, for the purpose of avoiding any tax penalties imposed by the IRS.