If you have tried to find solutions to solve your tax liability and employee retention problems, chances are you have been recommended to either a 401k, Profit Sharing Plan, SEP or Simple IRA. We know that if you are seeking a way to reduce taxes but also build a substantial retirement plan capable of replacing your current lifestyle in retirement, those options were not very effective! The lack of education and resources in the financial and tax preparation industry has left business owners relying on these options that are inadequate for their needs in Five key areas; Tax Reduction, Accelerated Retirement Savings, Cost effective employee benefits to retain good employees, saving enough for high cost of health and medical expenses in retirement, and creditor protection.
The Designer DB Plus™ offers a Powerful, Cost Effective Solution in retirement planning for business owners (with or without employees), independent contractors, consultants or even those with additional 1099 income . Business Owners can realize tremendous benefits and tax deduction provided by combining a 401k/Profit Sharing Plan with a customized Cash Balance Defined Benefit Plan coupled with a unique tax-free medical reimbursement plan while capturing over 90% of the contributions even with employees!
At Retirement Actuarial Services, our group of experienced professionals in Qualified Retirement and Tax-saving strategies are always there for your corporate needs. Our mission is to provide customized retirement plans for small businesses with personalized retirement planning and excellent customer service. We partner with your tax advisor to put together a team that understands how to design, implement, and sustain effective wealth-creating tactics large businesses use.
Few Plan Highlights:
- Large tax-deductible contributions of $75,000 – $500,000 or more in a single year
- The employer receives on average over 96% over 90% of the tax-deductible contributions
- Creditor protection under ERISA
- Tax-Free Post-Retirement Medical Reimbursement Benefits
- Highly flexible contributions that may adjust to your company cash flow
Retirement Actuarial Services Designer DB Plus ™offer the employer incredible tax perks. You may leverage your benefits system to motivate your employees, which in turn helps your company succeed.
If the company’s cash flow is weak, the annual contribution sum can be reduced to match corporate resources. Contributions can range from $75,000 to over $1m annually. Depending on the cash flow in a particular year, a business owner may be able to tremendously scale back their required contribution amount. Each plan has a customized design so depending on how your plan was designed will determine the amount of flexibility and the future funding options available to you. There are other options available that you can discuss with our team when you are designing your plan.
Contact Us and we will provide the best of our services.
Significant Changes in the Laws have made Designer DB Plus™ a powerful tool for High Income and Self-Employed Business Owners
Secure Act of 2020 Congress realized that America has a retirement planning crisis. So, to incentivize small business owners to offer retirement plans, they raised the tax credit limit from $1500 to $16,500. This dollar-for-dollar tax credit makes most plans a zero-setup cost for the employer.
CalSavers Retirement Savings Trust Act. It requires California businesses with five or more California-based employees (one of whom is at least 18 years old) to offer either an employer-sponsored retirement plan or the state-sponsored retirement plan to their workers.
California implemented a new mandatory law requiring all companies with more than five employees to offer a retirement plan to their workers by June 30, 2022. Companies that don’t will be required to enroll in CalSavers, the state-sponsored individual retirement account (IRA), or face fines.
Although California was the first state to pass legislation related to mandatory retirement plans, it’s not the only state to do so. Similar laws exist or are being implemented in several places, including in CO, CT, IL, MD, MA, ME, NJ, NY, and OR. In addition, many other states are actively exploring a state-sponsored retirement option.and Defined Benefit plans
The Tax Cuts and Jobs Act (TCJA) changed the tax law that affects high-income small business owners and self-employed individuals.
The TCJA changes increased the value of high contribution retirement plans like Designer DB Plus™. Taking these large tax deductions of the top line, you may bring your small business and self-employed clients below the taxable income thresholds ($340,100 married taxpayer, $170,050 single taxpayer in 2022). In addition, they may qualify for the 20% QBI (Qualified Business Income) deduction and save them tens of thousands of dollars in tax liability.