Current Year Tax Break

Why do clients open retirement plans? If you guessed current year tax savings you're right — over 90% of our clients would agree with you. They're opening defined benefit plans with contributions of $100,000+ for the largest deductions they can get. Run an illustration for a client who complains about high taxes.

Too Little Too Late

Our phones were ringing off the hook in April as small business owners looked for larger deductions against 2010 income. Unfortunately, because no one spoke to them before the end of 2010, their contribution amounts were limited to SEP, SIMPLE, or 401(k) levels.

Bigger Benefits

If you would like to talk to your high income clients about investing more for retirement in 2011 by opening a defined benefit plan, find the resources you need in our online sales kit. Also, use these additional talking points as appropriate — all benefits cited in our client survey:

• Reduces taxes - The higher the contribution, the greater the savings. We've had couples in business together contribute over $400,000 and reduce their tax obligation by over $100,000 annually. Run an illustration for your client to see the tax-savings potential.
• Increases Income in Retirement - The best strategy for increasing income in retirement? Greater accumulation of pre-retirement savings. Open a DB for 5-10 years and your client could accumulate an additional $1-2 million in retirement savings, up to 40% of which would otherwise have been paid out in taxes. Although a DB plan promises your client a specific annual benefit at retirement, in most cases, the plan is terminated at retirement and the assets are rolled into an IRA where they continue to grow tax deferred until withdrawn. Learn more about how DB plans work.
• Lowers Tax Bracket - Contributions to the DB plan are business deductions which can result in lower tax brackets for the owner in certain situations. High contributions may reduce your client's Adjusted Gross Income, making itemized deductions potentially worth even more. Compare the tax savings potential.
• Disciplined Savings Plan - Contributions are required each year to the DB plan. Our clients, generally age 40+ commit to build their savings over the term of the plan. We have many tools for adding flexibility if their objectives change. Read typical client profiles.
• Rapid Accumulation Makes Up for Not Saving Before - Particularly now, since the Great Recession, clients are interested in rapidly building or rebuilding their savings. In most cases DB plans can be designed to meet the objectives of the client for accelerated funding. Send your client our DB whitepaper.
• Pulls Money out of Business - For small business owners within 5-10 years of retirement who have kept most of their capital in the business, making large DB contributions might allow them to minimize taxes on the money as they pull it out of their business. Contact your small business clients now.

Check out our website at www.OnePersonPlus.com and our Sales page to find tools you can use right now.

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

We will do everything we can to help you bring in DB sales in 2011. 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 with questions.

Visit www.onepersonplus.com