When A Business-Owner’s Qualified Plan Isn’t Enough

“The cobbler’s children go barefoot!” The expression is used to describe situations where people who are skilled at providing something for others often neglect to provide it for themselves or their own family.

But often it is the government preventing adequate self-provision by the person providing for others. Particularly in the case of business owners who provide for employees’ retirement by sponsoring a qualified benefit plan only to find they are restricted from making contributions on their own behalf that are proportionate to their earnings.

But an increasingly popular supplementary retirement strategy for business owners looking for an effective way to build supplementary retirement income is available.

Consider the advantages over what even a qualified plan can offer:

• Availability of tax-free distributions at any time without early withdrawal penalties.
• No government reporting or contribution limitations.
• Complete separation from the business with no obligation to include employees.
• Tax-free protection in the event chronic illness, a long-term care event, and pre or post-retirement death.
• Protection from income and estate taxation at death.

Call us concerning clients you have whose retirement goals are not being met, even with maximum participation in available qualified retirement plans:

Tom Virkler, JD, Director of Advanced Markets, at 706-614-3796 or tom@cpsadvancedmarkets.com

For What It’s Worth: No surprise that a colonial cobbler was left with little time for his family. Accounts suggest it took between 8-10 hours to cobble a common pair of shoes. It was some consolation that a cobbler was the only tradesperson who could brag about a product that was soled before it was sold.