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Qualified Plans

 

The Defined Benefit Plan (412)(e)(3)

 

Do you need a bigger tax deduction than what your 401(k) will allow? Would you like a retirement plan that will provide a survivor benefit for your family, even if you don’t make it to retirement? Would you like a retirement plan that provides a predetermined benefit on the retirement date of your choice regardless of stock market performance? Security Mutual Life Insurance Company of New York can illustrate this plan for you. Please take a few minutes to hear more about how you can help secure your retirement income.

For more information, contact your Security Mutual Representative.

Video Transcript

Consider this simple question: Would you like to spend less time working and more time with your family, friends or hobbies? Of course you would.

You’ve done well managing your business over the years, but the volatility of the real estate and stock market that blanketed the past decade couldn’t have come at a worse time for baby boomers. Now that your time horizons are shorter, you don’t have enough time to invest your way to a secure retirement. But higher investment returns alone won’t get you there. Higher investment returns could be a dead end when it comes to your retirement.

Fortunately, the government is ready to help you when it comes to your retirement plan. This help comes in the form of tax deductions for your retirement savings.

Even with tax deductions, one size does not fit all. You can’t afford cookie-cutter solutions when it comes to retirement plans. Cookie-cutter retirement plans, the types of plans promoted by banks and Wall Street, won’t get you where you need to go.

The good news is the tax code does allow business owners to take significant deductions for their retirement savings—deductions that can make retirement a reality. This graph compares the tax deduction capacity of cookie-cutter plans, IRAs, SEP-IRAs and 401(k)s versus the much greater tax deduction capability of a specialty plan. Here, a defined benefit plan for a male aged 55 with a W-2 income of $150,000 and a K-1 income sufficient to support the contribution.

On the other hand, a specialty plan. Here, a defined benefit plan can get this 55-year-old male back on track to enjoy his retirement years. We are assuming an income of $250,000 and K-1 income to support the greater tax deduction.

The Defined Benefit Plan (412)(e)(3)

 

Do you need a bigger tax deduction than what your 401(k) will allow? Would you like a retirement plan that will provide a survivor benefit for your family, even if you don’t make it to retirement? Would you like a retirement plan that provides a predetermined benefit on the retirement date of your choice regardless of stock market performance? Security Mutual Life Insurance Company of New York can illustrate this plan for you. Please take a few minutes to hear more about how you can help secure your retirement income.

For more information, contact your Security Mutual Representative.

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