BUSINESS PRESERVATION & BENEFITS
Business Preservation
Businesses and their owners generally pass through several identifiable stages during their business life cycle. Business Preservation and protection is the first stage: Helping to ensure protection against unexpected pitfalls.
- Would your business be threatened by the death of a key employee?
- Regulations change. Have your plans kept pace? When was your last “checkup”?
- What about your partners? Do you have a buy/sell plan in place? How is it funded? What is your businesses current value?
- What about Employee benefit plans? Just as important, what are your “Selfish Benefits”?
You run your business. You are busy and your time is valuable. There are certain financial situations faced by your business and family that may not get your full attention. Our focus is to make sure that you get the information you need to help you protect your business and family.
Without a business succession plan, the death of an owner can create problems for the business owner’s heirs and the business itself. In fact, many businesses do not survive upon the death of one of the business owners. This can help ensure the business continues after an owner is no longer around.
Key person insurance is simply life insurance on the key person in a business. In a small business, this is usually the owner, the founders or perhaps a key employee or two. These are the people who are crucial to a business–the ones whose absence would sink the company.
When was the last time your business had a “checkup”? When was your last business valuation? Have things changed? What about "Selfish Benefits" for YOU? Lot's of important information to think about. Let our trained staff provide a free audit of your situation.
ADDITIONAL SERVICES:
EXECUTIVE BONUS PLAN
An Executive Bonus Plan helps you stand apart from the competition by providing meaningful benefits to you and your employees.
Benefits to Business
- Flexible contributions and multiple designs are available
- May select among employees and may include business owner employee as a participant
- Bonused dollars are tax-deductible to the company as compensation
- Simple to implement: no IRS approval required
- Provide incentives to reward and retain key employees
Benefits to Business Owner and Key Employees
- Receive a valuable benefit
- Participant owns the life insurance policy and selects their beneficiary
- Potential for retirement income through tax-free loans and withdrawals
- Accelerated benefit riders offer access to the death benefit in the event of a qualifying terminal, chronic, critical illness or critical injury
- Determine the amount and time of distribution
- Cost for this program may be less than other types of arrangements
- Heirs receive an income tax-free death benefit
- You may be able to pay income tax that is due on the bonus using loans and withdrawals from the policy
How it Works
Begin Executive Benefits
DEFINED CONTRIBUTION PLANS
Qualified plans provide essential retirement benefits for the employer and employee and can also provide death benefits.
What is a Defined Contribution Plan?
A Defined Contribution plan is a tax-qualified retirement plan in which annual employer contributions, specified by the plan, are generally based on employee compensation. The plan must be permanent and it must be established for the exclusive benefit of employees and their beneficiaries. The amount contributed by the employer on the employees’ behalf is specified in the plan – not a benefit at retirement. For that reason, a participant’s actual benefit cannot be determined until retirement.
There are two categories of Defined Contribution plans: Pension plans and Profit Sharing plans. Pension plans require a fixed annual employer contribution. Types of Defined Contribution pension plans include:
- Money Purchase plans
- Target Benefit plans
Profit Sharing plans permit a degree of flexibility in annual employer contributions. Types of profit sharing plans include:
- Traditional Profit Sharing
- Age Weighted Profit Sharing
- Profit Sharing Select (a.k.a. Cross Tested Profit Sharing)
- 401(k) plans
