401(k)’s are Killing Business Owners Retirement

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Right now one of the biggest secrets is that 401(k)’s right now are killing business owners retirement.

See the problem is that most business owners are looking at defined benefit plans like 401(k), SEP, simples of those type of things.

In 2019 they are limited by only being able to contribute $19,000 and another $6,000 if you’re over age 50.

In a simple plan, it’s limited even further by $13,000.

So what happens is the owner who’s at risk who is making sure that everybody has employment is being treated as the most junior as the most junior staff is.

Seems a little unfair…

With a defined benefit plan, you can set a plan up so that that business owner is getting the lion’s share of the benefit and what those plans can offer is the largest tax deduction.

Currently available under the IRS codes you can help defer reduce or even eliminate some of your stock market risk, you can use those benefits to buy estate planning tools, and as of 2019 you can guarantee an income of up to $225,000 a year guaranteed for life.

It’s a much better way of offering things to an employer instead of a 401(k).