Most business owners feel great (and well they should) about maxing out their 401(k). But that’s just the beginning of the good things that you can do for your employees and for yourself. Take a look at the data below which reveals what a difference some tax planning can make! Let’s take a look at an average small business with a Senior Partner near retirement. The first six columns show the effect of the typical 401(k) plan. The rest of the chart shows what’s possible by adding a profit sharing plan to the 401(k)! You may have noticed that the older owner not only gets more dollars, but also a larger percentage (62%) of the amounts added to the plan! This is just one benefit that tax planning can add to your retirement. Questions? E-mail us with this link.
[For a full-size image, click the chart below]
He is also a founding Board Member and Finance Director of the Fayette Pregnancy Resource Center and serves on the Board of the National Equal Rights Institute.