When it comes to your retirement assets, one factor to consider is your tax liability. Retirement assets can grow in vehicles that are taxable, tax deferred or potentially even tax free. With the vast majority of people surveyed believing that taxes are going to rise in the future, this is a recommended time to consider reviewing retirement solutions and the potential impact of future taxation trends.
Over the past few decades, many common strategies have led to a
taxable income stream in retirement, including traditional 401(k)s and IRAs. On the other hand, Roth 401(k)s and Roth IRAs have allowed savers to pay the taxes before purchase and withdraw their initial assets and earned interest tax-free in retirement.
The main challenge for high income earning business owners or employees is income disqualification or contribution limits to participate in these types of ROTH plans.
A Non-Qualified Deferred Compensation plan can allow you to control your future tax liability and participate without IRS and ERISA constraints.
- No defined annual IRS limitation on contributions
- No limit on gross income affecting your ability to contribute premiums.
- Tax-deferred cash value growth potential.
- Supplemental retirement income through tax-free withdrawals
- No 10% penalty tax for accessing policy cash values prior to age 59 ½.
- No required minimum distributions (RMDs) for owners.
- Income tax-free death benefit for your beneficiaries.
Work With New City Insurance
The knowledgeable team at New City Insurance has helped countless companies of all sizes find plans that best align with their business goals and strategies in order to help business owners and employees alike be satisfied with their insurance plans, benefits and more. To learn more about the benefits of tax-free income and whether it is the right choice for you speak with out team at New City Insurance by calling us today at 888.210.2759 or request a consultation online.