BRC provides pension plan design and actuarial services to small employers and self-employed individuals who wish maximize both tax deductions and retirement income.
Businesses that adopt a traditional defined benefit pension plan (DB) or a combination of a defined benefit and defined contribution plan (DB/DC) can realize substantial tax-deductible retirement contributions and significant future retirement income. Depending on the age and income of the business owner or owners, annual contributions can easily exceed $150,000 per owner.
Generally, these arrangements are appropriate for a business owner or owners who are age 40 or older and would like to make tax-deductible contributions in excess of the maximum limits of a 401(k) or other defined contribution arrangement, currently $56,000. In addition, this type of arrangement may be an ideal choice is for a dual income household where one spouse is self-employed. A substantial tax deduction could be realized by contributing a significant portion the self-employed spouse’s income into a DB or DB/DC arrangement.