At Palma Financial Services, Inc., we customize a retirement plan based on your age and goals. We’ve guided businesses and entrepreneurs throughout all business cycles toward successful retirement goals.
412(e)(3) Pension Plans
The 412(e)(3) pension plan is perfect for the small-business owner who has spent time and money building up his business instead of funding a retirement account. The plan is funded by life insurance and annuities with no limit on contributions. All company contributions to this type of fund are 100% tax-deductable and can be a formidable way to offset tax liabilities. If you are between 40 and 50 years of age, this plan is well worth consideration. It is a second chance at creating a well-funded retirement account for a small-business owner and a small group of employees.
In addition to 412(e)(3) and Sec 79 plans, traditional and Roth IRAs are still a viable retirement funding vehicle for many. They do suffer the $5,500 per annum restriction for tax-free contributions, but are otherwise an acceptable secondary funding option. The choice between IRAs will depend on your annual income, age and retirement needs. In general, if you are under the age of 59 and make less than $120,000 a year, a Roth IRA will make the most sense. Starting at age 60, the only advantage to a Roth IRA is the ability to continue contributions after 70 years of age.
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We are the leading retirement specialists in Dublin CA. and serving the needs of the greater Bay Area and beyond.