Business owners have toiled tirelessly trying to grow their businesses to a successful stage, and because of no fault of their own, the government limits their ability to get a majority of the profits they justly deserve. In most conventional retirement plans, the owners must limit the amount they give to themselves because the IRS does not allow normal plans to be overly top heavy. In addition, whether this business is a law firm or an accountant’s office, the founding owner is usually much older than the employees and makes a significant amount more.
Under a “PIG PLAN” that owner can be compensated for his years of service and his retirement benefits can better reflect his deserved portion of the business. We will put in place alongside his plan for the employees, a plan which will give him a vast majority, at his discretion, of the retirement funds. In most cases, the business owner will be able to put away up to 95% of the company’s retirement contributions into his individual account, allowing for the secure retirement he worked so hard to achieve.
This plan is endorsed by the IRS and with our guidance can defer a large portion of a client’s income into a qualified plan. This redirection of funds opens up new opportunities to help clients do proper succession and estate planning. You can establish yourself as a trusted confidant who has protected the equity in their business.