The November Call: Tax Strategy

For your successful small business clients, a OnePersonPlus defined benefit plan can cut taxable income by $100,000 while helping to build retirement wealth. Contributions to OnePersonPlus defined benefit (DB) plans average $100,000+ and the entire amount is a deduction against 2010 earned income. These plans work best for professionals, small business owners, and individuals with self-employment income -- who are age 40+.

Which clients need a phone call NOW?

Here are five solutions that could still save your high income clients $40,000 or more in taxes for 2010 and add $100,000+ annually to their retirement investments for you to manage. Who do you call first?

Independent Consultant Reduces Taxes

James, age 52, peak earning years, W-2 annual income $300,000 but his tax bill is also large.

Solution: A OnePersonPlus for 10 years

• Annual DB Contribution: $138,500
• Annual Tax Savings at 38%: $52,600
• Accumulation at Retirement: $2.36 Million
• Annual DB Benefit in Retirement: $195,000

Corporate Executive Secures Retirement with Side Income

Trisha, age 56 is Chief Marketing Officer at a high-tech, high-risk start up earning $250,000 and participating in the company 401(k). Her side income from speaking engagements and Corporate Director activities is more than $150,000 annually.

Solution: A OnePersonPlus for 6 years based on her side income

• Annual Contribution: $120,000
• Annual Tax Savings at 38%: $45,600
• Accumulation at Retirement: $984,100

Couple Upgrades Retirement Plan

Christine, age 58, and Bill, age 60, are married and each earns $245,000 a year in their anesthesiology practice. They want to build back their retirement savings quickly without taking on too much risk.

Solution: A OnePersonPlus invested conservatively

• Annual Combined Contribution: $365,300
• Combined Annual Tax Savings at 38%: $138,800
• Christine's DB plan accumulates $1.15 Million over the next 5 years and Bill's totals $1.1 Million.
• At that time they plan to terminate the plan and roll the lump sum into IRAs.

Dentist Moves Up Retirement Date

Mollie, age 55 has a thriving dental office, with 3 younger employees. She’s worked hard to get to this point, with W-2 income more than $400,000 a year, and would like to retire by age 62.

Solution: A OnePersonPlus with maximum retirement plan contributions for 7 years for business owner.

• Annual Contribution: $168,800
• Annual Contribution Total for 3 Employees: $25,200
• First Year Tax Savings for Mollie: $63,800
• Accumulation at age 62 for Mollie: $1.65 Million
• Projected Annual Benefit for Mollie:$136,500

Engineer Builds in Flexibility by Adding a 401(k)

Kumar, age 48, a software engineer, will earn about $135,000 from his S-Corporation in 2010. He wants as high a contribution as possible in 2010 but his income might be lower next year.

Solution: A OnePersonPlus and a one person 401(k)

• Annual Contribution to OnePersonPlus: $52,900
• Optional Contribution to a 401(k) this year: $24,600
• Total Contribution in 2010: $77,500
• First Year Tax Savings: $29,400
• OnePersonPlus DB Accumulation at Retirement: $1.63 Million
• Projected Annual DB Benefit:$135,000

Do you have clients like these? Let us help you ...

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.

Visit www.onepersonplus.com.