What is an Enhanced Pension?

What is an Enhanced Pension and How Can It Work for Business Owners, Shareholders or Partners?

When it comes to saving for retirement, everyone knows securing a pension is the gold standard. However, companies offering pensions are few and far between.

For many business owners, shareholders or partners, securing a pension plan for themselves is ideal, but the cost of providing it company-wide is sometimes unattractive.?

How can you enjoy the business deduction on the front end and receive tax-free income on the back end, without needing a company sponsored qualified retirement plan? With an Enhanced Pension.

What is an Enhanced Pension?

An enhanced pension is a tax-efficient investment solution that provides similar benefits of a pension, without utilizing a formal benefit plan in the company structure.

How Does an Enhanced Pension Work?

Using a Benefit Plan as an example, consider this:

• If you have an effective individual tax rate of 37% and you contributed $200k/yr into a company benefit plan, you'll pay over $1.6M in taxes during retirement.
• The cumulative tax bill on your retirement income is costly.? This is something that most business owners overlook when setting up a qualified retirement plan for the current tax deduction.?
• Taxes are deferred and grow to be a big headache.

Our Enhanced Pension solution utilizes a similar process to secure a corporate tax deduction, but rather than paying the taxes out of your income, Enhanced Pension provides tax-free income.

The EP plan enables you to keep the entire amount of your investment working for you, securing a greater outcome over time.

Try our Enhanced Pension Calculator here!

The details of how this works varies client by client; our proprietary modeling tools show you exactly how it works using your savings figures and retirement goals.

Who Can Benefit from an Enhanced Pension?

Potential Candidates For Enhanced Pension include Business Owners, Shareholders, and Partners who would like to deduct a minimum of $100k per year to enhance their retirement income.

Examples:

• Small to Mid Sized Business Owners
• Physicians
• Dentists
• Attorneys
• Financial Advisors
• Family Businesses
• Pro Athletes
• Board Members

Conclusion

An Enhanced Pension can provide significant benefits to those who are looking to ensure financial security in their retirement years. They can provide a more generous income, greater flexibility, and can help to take into account inflation and other factors that can impact your retirement income.?

The best part: business tax deduction on the front end, tax-free income on the backend.

I’m happy to answer any questions you may have on this solution and other tax-efficient strategies. Please reach out. You can email me directly at [email protected] or call 773-318-9608.