After 15 years of growing a small business from a garage to a sophisticated operation exporting internationally, four partners set their sights on getting prepared for retirement. All had invested heavily in growing the firm and felt significantly behind in their retirement savings goals.
FuturePlan added a Cash Balance plan to the 401(k) Profit-sharing plan currently in place. This action allowed the partners significantly higher contribution limits and the opportunity to acquire 20 years of savings into 10.
With these new limits, the partners could contribute 75% to 150% more to their savings plans. (e.g. $314,500/year for a 55-year-old). Now, all four partners have the reassurance of knowing they can retire very comfortably by age 65 or sooner.
Do you have clients or prospects looking to accelerate retirement savings and reduce their tax burden? To receive a Cash Balance Overview with one of our dedicated FuturePlan Cash Balance experts, fill out this quick form here.
Retirement Plan Illustration – 2023
Results shown may require plan amendments to the 401(k)/profit sharing plan before the plan year end.
*Assuming a 45% tax rate; taxes are deferred only.
Two of the 18 staff members will need an increased profit sharing contribution to pass testing requirements.
Plan designs are for illustration purposes ONLY. Contribution amounts are subject to change based on final year-end census data. If company is a Corporation, an S-Corporation or an LLC taxed as a corporation, owner(s) compensation listed above must be reported on Form W-2.
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This sample is for illustrative purposes only.