Defined Benefit Plans: A Retirement Plan Every Small Business Owner with No Employees Should Have

In this episode of the Hightower Bethesda podcast, Leah Jones, Director of Financial Planning for Hightower Bethesda, talks to Philip Pirio, Senior Plan Design Consultant for Dedicated Defined Benefit Services about defined benefit plans for business owners with no employees and 1099 income. Listen to how these plans are a great way to maximize retirement savings and minimize taxes. Phil discusses these plans with real world examples, what to keep in mind when setting one up and what happens if you terminate the plan.

 

“The closer you are to retirement age, the fewer years you have to put into that plan to reach the goal that’s defined as the benefit. Therefore, the contributions get higher.” -Philip Pirio [10:46]

 

What You Will Learn:

 

• [01:11] Narrowing the conversation
• [03:14] What is a defined benefit plan
• [06:25] Some contribution factors
• [11:43] How this applies for someone who makes $1 million
• [13:07] How to figure out how much to stash away
• [15:48] What to think about when setting up a defined benefit plan
• [20:27] What happens if you terminate the plan
• [23:41] The maximum amount to put into a defined benefit plan
• [25:48] Some real world examples
• [32:39] Deadlines and taxes
• [37:50] Phil’s closing thoughts

 

Our Contacts:

Website: http://bethesda.hightoweradvisors.com/

LinkedIn: https://www.linkedin.com/company/hightowerbethesda/

Facebook: https://www.facebook.com/HightowerBethesda/

Twitter: https://twitter.com/LeahPlans4You

 

Resources:

 

Visit our website: https://bethesda.hightoweradvisors.com

 

Visit Dedicated Defined Benefit Services: https://www.dedicated-db.com/