Below are some examples based on actual clients, showing how your tax-deferred “pot of gold” could grow. We work with you to provide a customized set-up for your unique business and retirement needs.
Dentist: start age 41
Annual contributions: DB $84,000, 401k $32,000
Annual cost for employees: zero
Annual tax reduction: $48,000
Pot of Gold at age 62 (estimate 5%): $4,143,000
Structural Engineer: start age 38
Employees: eight, six in plan
Annual contribution: DB $125,000, 401k $37,000
Annual cost for employees: $16,000
Annual tax reduction: $65,000
Pot of Gold at age 62 (estimate 5%): $6,497,000
Anesthesiologist: start age 42
Annual contribution: DB $100,000
Annual cost for employees: $7,000
Annual tax reduction: $40,000
Pot of Gold at age 62 (estimate 5%): $3,306,000
The investment earnings are not taxed until you take money out. Your entire fund continues to grow without taxes!!!
At retirement, you control your taxes by how much you take out: the dentist above moved to a state with zero income taxes. There are no Social Security taxes on retirement income.