cash balance plan for self-employed professionals

By: Matthew Morrow, Founder and President of Munroe Morrow Wealth Management

 

You’re working hard and generating significant income. Your challenge is maximizing your retirement savings and minimizing your taxes.

 

High-income earners can dramatically increase their pre-tax retirement contributions and lower their current tax burden by pairing a traditional 401(k) plan with a Cash Balance Pension Plan.

 

Example

One of our clients, a 50-year-old tech consultant earning $1,500,000 per year contributes:

  • $23,500 to a 401(k) Plan
  • $7,500 401(k) Catch Up (age 50+)
  • $21,000 Profit Sharing
  • $100,0000 to Cash Balance Pension Plan

Contributing this $152,000 between his 401(k) and Cash Balance Pension Plan, he reduced his federal tax bill by more than $56,000, all while building long-term retirement wealth.

 

Who It’s For

Cash Balance Pension Plans are ideal for:

  • High-earning self-employed professionals
  • Professional offices (doctors, attorneys, consultants).
  • Especially effective for older savers (age 50+) who are getting closer to retirement.

 

Many business owners believe they are limited to the basic 401(k). If you utilize the right plan, you can take advantage of significant tax savings and supercharge your wealth.

 

Are you maximizing your retirement savings and minimizing your taxes to the best of your ability? Munroe Morrow Wealth Management specializes in helping high-net-worth entrepreneurs and self-employed individuals turn their income into long-term wealth. Schedule a Conversation.

 

 

Munroe Morrow Wealth Management is a full-service wealth management firm located in Boston, MA. We work with retirees across the US to help them make confident financial decisions.

 

Disclosure: This material is for general information only and is not intended to provide specific advice or recommendations for any individual.