Business Quiz

Business Owner Fact: most small to medium size Business Owners are "leaving money on the Table!!" by not taking maximum and full advantage of all the tax deferred savings permitted by law. Why is this?

The rules and requirements of the various retirement arrangements are very complex encompassing many legal, tax, actuarial and administrative considerations. Large corporations rely on internal competencies or external consultants to guide them in identifying and implementing the most appropriate arrangements for their employees...and the large consultants, in general, do not attend to the small to medium size Business community. At PAR Enterprises our focus is the Small Business client.

Quick quiz: For a 45 year old Business Owner with 100 employees averaging 30 years old, What would be the most appropriate Retirement arrangement?

        A) a 401(k) plan?
      B) a target benefit plan?
      C) a final average pay pension plan?
      D) a cash balance/equity pension plan?

Answer
Under a 401(k), the maximum that the highly paid Business Owner can defer is limited both by IRS rules as well as by the amount that other employees contribute. Both final average pay and cash balance pension Plans, though they may favor older workers, are complex and costly in administration and maintenance and require annual actuarial valuation.

A little known secret...the Target Benefit Retirement Plan can permit the business owner to defer significantly more than a 401(k) plan and when appropriately designed, the contributions can be funded without added cost to the business. PAR Enterprises can assess your individual and company circumstances on a no obligation basis to determine how to tap these opportunities.
Through the reinvestment of significant cost savings, PAR Enterprises can enhance your retirement savings at no added cost to your business.

PAR ENTERPRISES, INC.

Insurance, Real Estate, and Pension Consultants