Retirement Plans For Business Owners

You May Qualify If...

Do you fit any of the categories below?

Your company may qualify if...

You own an LLC, Partnership, Sole Proprietorship, S Corp, or C Corp
Work as an independent contractor
Earn a net profit on a Schedule C and pay self-employment tax
Perform consulting or contracting work as a side business
Freelance full-time

A man sits at a desk talking on a cell phone

You Begin With Two Basic Plan Types

Choosing the right plan comes down to how much income you want in retirement and how much your business can contribute to the plan over the next few years.

Defined
Benefit
Plans

Defined
Contribution
Plans

Why a Defined Benefit Plan?

Defined Benefit Plans (also known as “pension plans”) are relatively underutilized and often misunderstood.

These plans provide the largest possible retirement benefit and guarantees that you will receive a benefit in retirement. They let you plan backward by choosing the amount of income you want in your retirement years, then calculating the annual contributions needed to achieve that payout.

A Defined Benefit Plan could let you double or triple what you’d put away with a more traditional plan type, while offering several customization options and advantages.

Employer Paid

Higher Contribution

Optional Death Benefit

Tax-Deductible Contributions

Investments Grow Tax-Deffered

Possible Guaranteed Retirement Benefit

Plans have the ability to accept substantial contributions paid for by the business for its employees, including owners.

If you haven’t saved enough for retirement, you can make larger contributions later in your career to make up for lost time.

Adding a death benefit is not just a way to protect your loved ones in the event of your passing, it’s also a way to add life insurance to the policy with pre-tax dollars.

Contributions by your business to a Defined Benefit Plan are generally tax deductible.

Plan assets accumulate on a tax-deferred basis. No tax is paid until after retirement. This is a great benefit if you think you’ll be in a lower tax bracket when you retire.

A fully-insured Defined Benefit Plan option can offer a guaranteed retirement benefit that is not subject to the short-term fluctuations of the stock market.

Why a Defined Contribution Plan?

Defined Contribution Plans, better known as 401(k) or Profit-Sharing Plans, are the most popular retirement plans offered by employers today. These plans are an easy way for employees to contribute towards and control how their contributions are invested.

Employer Contributions

Market Exposure

Investment Flexibility

An employer may make contributions to a Profit-Sharing Plan, including matching a certain portion of its employees’ contributions to its 401(k) Plan.

A Defined Contribution Plan is subject to market exposure. An employee’s retirement benefit is dependent upon the performance of the plan’s investments.

An employee can control how their money is invested by selecting from a combination of stocks, bonds, mutual funds, and money market investments.

Defined
Benefit
Plans

Why a Defined Benefit Plan?

Defined Benefit Plans (also known as “pension plans”) are relatively underutilized and often misunderstood.

A Defined Benefit Plan could let you double or triple what you’d put away with a more traditional plan type, while offering several customization options and advantages.

Defined
Contribution
Plans

Why a Defined Contribution Plan?

Employer Paid

Plans have the ability to accept substantial contributions paid for by the business for its employees, including owners.

Higher Contribution

If you haven’t saved enough for retirement, you can make larger contributions later in your career to make up for lost time.

Optional Death Benefit

Adding a death benefit is not just a way to protect your loved ones in the event of your passing, it’s also a way to add life insurance to the policy with pre-tax dollars.

Tax-Deductible Contributions

Contributions by your business to a Defined Benefit Plan are generally tax deductible.

Investments Grow Tax-Deffered

Plan assets accumulate on a tax-deferred basis. No tax is paid until after retirement. This is a great benefit if you think you’ll be in a lower tax bracket when you retire.

Possible Guaranteed Retirement Benefit

A fully-insured Defined Benefit Plan option can offer a guaranteed retirement benefit that is not subject to the short-term fluctuations of the stock market.

Employer Contributions

An employer may make contributions to a Profit-Sharing Plan, including matching a certain portion of its employees’ contributions to its 401(k) Plan.

Market Exposure

A Defined Contribution Plan is subject to market exposure. An employee’s retirement benefit is dependent upon the performance of the plan’s investments.

Investment Flexibility

An employee can control how their money is invested by selecting from a combination of stocks, bonds, mutual funds, and money market investments.

What’s The Difference Between a Defined Benefit Plan and a Defined Contribution Plan?

The primary difference between Defined Benefit Plans and Defined Contribution Plans is that with a Defined Contribution Plan, you contribute funds that will have an unknown benefit at retirement.

With a Defined Benefit Plan, the business entity contributes a specific amount of funds based on a set payout in retirement, so you know exactly what you will get in your retirement years.

No Matter Which Plan You Choose, You Will Still Enjoy These Retirement Saving Advantages...

Tax-Deferred Savings

Company Paid Contributions

Tax-Friendly Investment Earnings

Significant & Meaningful Benefits

Contributions to both plans may be tax-deductible, and the tax on these plans is deferred until retirement. This is a great benefit if you think you’ll be in a lower tax bracket when you retire.

Your business can make contributions to both types of plans. Depending upon the plan, contributions can be substantial.

There is no tax on plan assets, which allows contributions and earnings to compound at a faster rate.

Both Defined Benefit Plans and Defined Contribution Plans provide a meaningful benefit that can help you attract and retain experienced employees.

Tax-Deferred Savings

Contributions to both plans may be tax-deductible, and the tax on these plans is deferred until retirement. This is a great benefit if you think you’ll be in a lower tax bracket when you retire.

Company Paid Contributions

Your business can make contributions to both types of plans. Depending upon the plan, contributions can be substantial.

Tax-Friendly Investment Earnings

There is no tax on plan assets, which allows contributions and earnings to compound at a faster rate.

Significant & Meaningful Benefits

Both Defined Benefit Plans and Defined Contribution Plans provide a meaningful benefit that can help you attract and retain experienced employees.

Get Your Plan Started in 5 Easy Steps

1

Gather

Complete questionnaires and estimate your plan contribution

2

Review

Speak with a Retirement Plan Professional to review your needs

3

Propose

Receive a customized plan proposal for you and your stakeholders

4

Establish

Implement your new plan and complete all paperwork

5

Administer

Receive ongoing reporting and policy administration

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