Tackling Taxes Before Year End

If you plan to talk to your clients in December, particularly those in business for themselves or with self-employment income, here are 5 tips to help them make the best decision about retirement plans:

1. Open Plans Now, Don't Fund Until 2011

   If you want to put more than $50,000 or over 25% of compensation into a plan, open the plan by December 31. Your contribution is not required until you file your taxes. Defined benefit or 401(k) plans potentially could lower your tax bracket and your overall tax liabilities but they must be opened this month for 2010 tax savings.
   Click here to compare plans.




2. Maximize Tax Savings by Adding a DB to 401(k)

   We might be able to upgrade your retirement plan by adding a defined benefit plan to super charge your retirement savings and reduce your annual tax liability — starting this year. Defined Benefit plans are based on your age, income, years to retirement so there isn't a single cap on what everyone can contribute. We can run the numbers to see what your maximum is.
   Calculate maximum DB contribution and tax savings.
   Request a custom proposal for combined DB and 401(k)




3. Think 3-5 Years

   Many of our clients are retired execs who are now consulting or professors with income on the side. They don't realize that they can set up a retirement plan for the next 3-5 years, and put the majority of these "extra" earnings into a Defined Benefit plan. A DB can be terminated and rolled into an IRA when the income stops.




4. Pay Yourself More!

   A client's compensation will be a key factor in driving how much they can contribute to a defined benefit plan and deduct from taxes. For your clients with S-Corps, the contribution to a defined benefit retirement plan will be limited to W-2 compensation. Call us now, before year-end, to work with you and your client to determine how to maximize contributions and manage tax liability.

   
   

5. You Still Have 30 Days

   Dedicated DB has special procedures in place to receive plan set up forms through January 7th. Clients must sign our Quick Adoption forms by December 31, 2010. We'll work with you to finalize plan design in 1^st quarter 2011. We are here every day through the end of the year to guide you through the process.

Together we'll meet your clients' needs — and exceed their expectations.

Contact our defined benefit specialists. We can create custom proposals and design plans to fit your client's situation. Call us toll free at: 1-866-269-2706 or email us at dbplans@dedicated-db.com.

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