This recent article on Forbes.com about retirement planning for small businesses has some good advice. One important thing missing, though, is how well a defined benefit (DB) plan can address common small business owners’ goals in several ways.
- A DB plan can allow for far large deductible contributions than any other type of qualified plan.
- A DB plan can provide a far larger retirement income for older business owners than any other type of plan started at the same time.
- A DB plan may provide a way for a business owner to defer paying taxes on the sale of the business.
- A DB plan can be paired with a defined contribution plan (e.g. a 401(k) plan) to minimize employee costs while maximizing benefits for the owner(s).
For more information on how a DB plan can help your retirement objectives, contact us at 503-520-0848.