Pension Plans Can Save You Thousands of Dollars
In a 2015 article in the Wall Street Journal, it was noted that GOP candidate Jeb Bush saved an average of $350,000 per year via the use of a pension plan. This translates to $1,750,000 over the course of five years by diverting money that would otherwise be spent on income taxes. According to reports, Bush’s plan was built for two unnamed individuals, likely Jeb and his son. While this strategy is legal, it is relatively under utilized by many professional accountants. Similar to the defined benefit plans from the era before the 401(k), a pension plan allows you and your employer to contribute much more than a traditional pension plan, which enforces the following limits on the amount of money you can contribute per year to your 401(k):
- Under age 50 –a maximum of $18,000 per year
- Over age 50 –a maximum of $59,000 per year
However, with this unique pension plan, an individual can contribute a maximum of excess or over $250,000 per year toward an individual’s entire retirement fund. You can imagine the savings that would occur over 15, 10, or even 5 years.
A number of my clients are successfully using this same strategy.
Is a Pension Plan Right for You?
You don’t need to be in the big leagues alongside the likes of Jeb Bush in order to make use of a pension plan. And you don’t need to hire an expensive lawyer to begin taking advantage of this unique opportunity. Our experts at Palma Financial have the experience to establish your unique pension plan and keep them compliant with the law.
This plan is likely right for you if you meet at least one of the following criteria:
- You are a self-employed professional, such as a doctor or dentist with consistent cash flow
- You are a small business owner with several employees
- You need a safe, legal way save money quickly for retirement
- You want to retire early – before the age of 65
If any (or all) of the above apply to you, you could be saving thousands of dollars per year toward retirement. Interested but still not sure if you can benefit from this plan? Call Palma Financial Services, Inc. today for more information.
Palma Financial Services, Inc. Can Get You Started
One deceiving thing about the Wall Street Journal article is the notion that you need to be making millions of dollars per year and you need to hire a professional attorney to set up this pension plan. But that simply isn’t the case. Our professional accountants at Palma Financial Services, Inc. will gladly speak with you regarding this specialized pension plan and, if qualified, we will work with you today to start saving money for tomorrow. Call us today for a consultation! Retirement is at your fingertips.
With us, you have an extremely qualified team of CPAs; an experienced tax and financial team working for you. You will be implementing the same plan as Jeb Bush!
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