Creating a Pension for Self Employed?

[infoseeker]

i am looking to create a pension for myself . i am a sole prop- independent insurance agent. I would need to know where i can find a pension consultant or pension manager that can help me with options available to me in helping me set it up. I need tax deductions and looking to keep more of what i make deferring taxes and taking tax deductions as much as i can each year.

I know there are options such as Solo 401k , Sep IRA, Simple IRA.

I am also looking to set up an IUL for myself besides a pension to capitalize on tax free income when i retire.

Any feedback would be appreciated

 

[Justin Bilyj]

This is a great thread to start. I want to see the questions that need to be asked.

I don't have much experience in this yet but I would look into having a SEP ira and supplement that with an indexed life insurance product (North American). You can still set up the SEP for 2012 if you haven't filed your taxes yet I do believe. Minimal fees and set up costs.
A 412 plan can allow you to have life insurance as part of the plan so that would be ideal, not sure if you can set one up for 1 person.

 

[infoseeker]

okay thanks for info

 

[SWM]

My first question to you is what was your net income for 2012 and 2011? Do you have any full-time office admin?

 

[infoseeker]

no i dont have a full-time office admin or any employees. My net income in 20111 was about 15k after expenses and deductions. I have not finish my taxes for 2012 but i assume my net income will be about 45k-50k for 2012

 

[SWM]

no i dont have a full-time office admin or any employees. My net income in 20111 was about 15k after expenses and deductions. I have not finish my taxes for 2012 but i assume my net income will be about 45k-50k for 2012

Great, now what is your age?

 

[infoseeker]

53 i am single not married no dependents

 

[Milkman1265]

if you make a pension plan for yourself, is it true that all benefits for all your employees must be the same?

so if you buy health insurance and pension for yourself, when you hire a staff you must provide those to him/her?

 

[SWM]

53 i am single not married no dependents

Just to keep it simple, you said you are looking for the deduction (deferred tax event). I would probably go with a SEP. Choose your investment vehicle, and file a 5305-SEP.
Annual contributions an employer makes to an employee’s SEP-IRA cannot exceed the lesser of:

1. 25% of compensation, or
2. $50,000 for 2012 and $51,000 for 2013 (subject to annual cost-of-living adjustments for later years).

The limits in the preceding sentence apply in the aggregate to contributions an employer makes for its employees to all defined contribution plans, which includes SEPs.
Only up to $250,000 in 2012 and $255,000 for 2013 (subject to annual cost-of-living adjustments for later years) of an employee’s compensation may be considered. Contributions must be made in cash. Property cannot be contributed.

 

[Justin Bilyj]

Just to keep it simple, you said you are looking for the deduction (deferred tax event). I would probably go with a SEP. Choose your investment vehicle, and file a 5305-SEP.
Annual contributions an employer makes to an employee’s SEP-IRA cannot exceed the lesser of:

1. 25% of compensation, or
2. $50,000 for 2012 and $51,000 for 2013 (subject to annual cost-of-living adjustments for later years).

The limits in the preceding sentence apply in the aggregate to contributions an employer makes for its employees to all defined contribution plans, which includes SEPs.
Only up to $250,000 in 2012 and $255,000 for 2013 (subject to annual cost-of-living adjustments for later years) of an employee’s compensation may be considered. Contributions must be made in cash. Property cannot be contributed.

I am trying to recall are the contributions for any given year optional for other employees? Can other employees still contribute even if the employer doesn't?
Is the SEP creditor proof?