For small business owners wishing to be pro-active about retirement for themselves and their employees they may wish to consider a Defined Benefit Pension Plan 412(e)(3).
1) Contributions are tax deductible to the employer.
2) Employer contributions are currently not taxable to employees.
3) Substantial benefits can be provided, even with early retirement.
4) Fully guaranteed pension benefits.
5) No actuarial certification required.
6) Benefits are not dependent on asset returns.
7) The plan is governed by the Employee Retirement Income Security Act (ERISA) and registered with the IRS.
If you have any questions regarding Define Benefit Pension Plans please email Miguel Palma, CPA or call us today so we may discuss your particular situation.
This particular retirement plan is well suited to established businesses that wish to increase contributions and tax deductions to a greater extent than is permitted by a traditional defined benefit plan.
Some of the advantages of a
412(e)(3) defined benefit plan are as follows:1) Contributions are tax deductible to the employer.
2) Employer contributions are currently not taxable to employees.
3) Substantial benefits can be provided, even with early retirement.
4) Fully guaranteed pension benefits.
5) No actuarial certification required.
6) Benefits are not dependent on asset returns.
7) The plan is governed by the Employee Retirement Income Security Act (ERISA) and registered with the IRS.
If you have any questions regarding Define Benefit Pension Plans please email Miguel Palma, CPA or call us today so we may discuss your particular situation.