Advanced Tax Savings Plans
Tax Advantaged Savings Plan for Business Owners.
According to the latest statistics from the Small Business Administration, small and mid-size businesses make up 99.7% of employer firms in the U.S. today. The good news is Uncle Sam allows business owners to save money in tax deferred vehicles that W2 employees can’t. SEP’s, Keogh’s and Section 79 Savings Plans are 3 good examples.
Yet most business owners and professionals tell us their main retirement plan is their company. We call it the retirement big bang theory. At some point in the future they plan to sell their business to someone they don’t know, for an unknown price, in an unknown economic environment and hope everything works out. Most tell us they have no real idea how big the sale event will be.
At Advanced Wealth Preservation, we show business owners and professionals how to set up tax-advantaged savings plans for retirment before they sell their business. These plans are in addition to their SEP’s, Keogh’s and defined benefit plans. What makes these plans unique are the way they are funded and their tax status.
Our advanced retirement savings plans are rooted in the tax code. The money inside the vehicle grows tax deferred and the withdrawals can be set up to produce income based on principal and tax-free gains.
Another benefit is the unique way the plans are funded. We show business owners how to fund these retirement plans in tax-advantaged ways. Wealthy individuals and business owners have used these tax-advantaged vehicles and plans for years.
Here are some benefits of these tax-advantaged savings plans:
- No minimum age or income requirements
- Expanded contribution opportunities – Unlike 401(k)’s or IRAs, you can put substantially larger sums of money per year in these plans
- No mandatory distributions – You can take money out at any age and there are no mandatory distributions at age 70 ½.
- Protection against market loss – The plan contractually guarantees your account value will never incur a negative market return in any year.
- Tax-deferred growth
- Tax-free access to your money
- Does not create taxation of Social Security benefits
