Independent Consultant Reduces Taxes
Professor Secures Retirement with Side Income
Medical Couple Diversifies
Dentist Moves Up Retirement Date
Engineer Builds in Flexibility by Adding a 401(k)

Here are a few examples of how the OnePersonPlus^® can work for your clients

Independent Consultant Wants Maximum Contribution to Reduce Taxes

James, age 52, is a Management Consultant, and his business is incorporated. He's in his peak earning years with an annual income of $300,000. He plans to retire in 10 years at age 62. He's looking for a way to reduce taxes and increase his retirement assets significantly. With his existing 401(k) Plan, James can only contribute $54,500. At the 38% marginal rate, with his 401(k) Plan, James saves only $20,700 on combined federal and state income taxes in 2010.

Solution: A OnePersonPlus defined benefit plan for 10 years

James can add a 401(k) and contribute an additional $36,700 for a total contribution and deduction in 2010 of $175,200.

Professor Secures Retirement with Side Income

Walter, age 56, teaches in the University Business School and consults on the side. He has a 403(b) retirement plan at the University but wants to retire in 6 years with more income than that plan will be able to deliver. His consulting income after he pays half of his self-employment tax has been at least $150,000 for the past five years. He would like to contribute as much of his annual consulting income as possible to a retirement plan. With OnePersonPlus, in 2010 he could contribute $120,000 based on his consulting income — 80% of his consulting income — to his retirement. Tax savings at the combined federal and state tax rate of 38% would be $45,600.

Solution: A OnePersonPlus for 6 years based on consulting income

In order to fund his 2010 contribution of $120,000. Walter can use his consulting income, his salary or a portion of his taxable investments. By moving taxable investments to OnePersonPlus, next year he will have less investment income that is taxable and more that is tax-deferred, lowering his overall current taxes. This year his contribution to OnePersonPlus eliminates current taxes on 80% of his consulting income.

Medical Couple Diversifies

Christine, age 58, and Bill, age 60, are married and each earns $245,000 a year in their anesthesiology practice. Most of their income has been invested in their business and real estate. Now they are ready to balance the risk of real estate with more diversified investments.

Solution: A OnePersonPlus for 5 years invested in mutual funds

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.

Engineer Builds in Flexibility by Adding a 401(k)

Kumar, age 48, a software engineer, will earn about $135,000 W-2 income 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)

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