Business planning is not just about investments. For many owners, the real issue is protecting continuity, rewarding key people, and creating owner-focused retirement strategies that fit a closely held business.
This planning category includes SIMPLE IRAs, 412(e)(3) structures, buy-sell agreements, key person protection, executive bonus arrangements, and split dollar strategy.
Many of these strategies may incorporate properly structured life insurance solutions, including policies with living benefits, but the emphasis is on the planning strategy itself.
412(e)(3) planning is often best suited for successful solo professionals and very small offices—such as attorneys, physicians, realtors, consultants, or firms with only a handful of employees. Because the plan generally needs to be offered to eligible employees, it is often most efficient when the business is very small while still creating a strong owner benefit.
Nothing on this page should be construed as tax, legal, ERISA, or accounting advice. Plan design and implementation should always be reviewed with the business owner’s qualified tax, legal, and retirement plan professionals.
