SEP Case Study

SEP Case Study

Retirement plans help businesses, regardless of type or size, and there is a plan for everyone.

Pension Investors Corporation of Orlando can help you find the right plan for you.

So how can family businesses best profit from having a retirement plan? Quite simply, the family needs to be able to afford and benefit from the plan in the future without losing too much to taxes in the present. It is important to be thinking of the long run and how the tomorrow is affected by the choices that are made today. A qualified retirement plan can make all the difference for a family and their business.

Family-run businesses are an important part of the American economy. Small businesses benefit the community by contributing – in a big way – to the national economy and by engaging employees. A qualified retirement plan is a benefit that can help during retirement, long after the current successes. Taking certain steps and creating a proper plan can ensure a successful future for family members.

Real Life Example

For example: A husband and wife work together at a law firm. He is told to take $120,000 of his salary and his wife pays herself $30,000 in W-2 salary. Their friend advises them to fund a SEP-IRA as soon as possible in order to avoid administrative expenses. They fund a total of $37,500 for a couple of years until one of their employees is eligible, at which point her contribution is 25% of her salary(same % as others). This means trouble since they must fund her $10,000 or they cannot fund anything for themselves. Finally, their CPA is asked to introduce them to someone who can help.

Pension Investors Corp. of Orlando aids them in establishing a 401(k) Safe Harbor, along with a defined benefit plan, which allows the client to fund $150-$200,000 every year for the next 10 years. They continue to make a contribution to their employee at approximately $3,500 each year, which they are happy to do since their tax savings are approximately $80,000. In the end, the husband and wife think it a good investment to pay Pension Investors Corporation of Orlando to design and administer their plans.

How Can Pension Investors Corporation of Orlando Help?

At Pension Investors Corporation of Orlando, we help individuals and businesses of all shapes and sizes to get the help they need when it comes to Qualified Plan design. We leverage generations of knowledge to customize solutions for your planning needs. Whether you are looking for more information on defined benefit plans or business continuation or even individual estate planning, the team at Pension Investors is eager to talk with you.

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Pension Investors Corporation of Orlando

Address
220 E Central Pkwy #3040
Altamonte Springs, FL 32701

Phone: 407-875-3332
Fax: 407-875-0189
Email: info@picorl.com

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