With the Bush tax cuts set to expire on Dec. 31 2010, marginal income tax rates for individuals earning more that 200k annually will increase to nearly 50%. A pension ( defined benefit) plan is the only qualified retirement plan that will allow business owners to contribute and deduct more than $49,000 annually in 2010.
Today, with the savings rate so low, Congress has relaxed the rules to allow deductions for contributions to both defined benefit and profit sharing plans. These custom combination plans can maximize deductions and dramatically reduce employee cost for business owners or plan sponsors.
National Pension Planners (NPP) is a true leader in the custom pension design and consulting profession. NPP's bonded, third party administrative staff members include ERISA experts, ASPPA Certified Administrators, Certified Pension Consultants (CPC), Chartered Financial Consultants (ChFC), Chartered Life Underwriters (CLU, Certified Financial Planners (CFP), enrolled actuaries (EA), an attorney and a Certified Public Accountant (CPA). Many with more than 30 years of experience each in their respective field. Each pension plan trustee is assigned an individual case manager that is familiar with the details your assigned plan. All case managers carry professional designation and attend ERISA compliance workshops regularly. (view about us)
Each pension plan administered by NPP is insured up to 10 million dollars to protect against non-compliance operational error. NPP objectively spreadsheets all viable pension plans to determine which design is most suitable. An explanation of benefits for each illustrated plan is presented to all clients and their CPA via a web-ex. Each plan is audited annually by an Enrolled Actuary and approved by the IRS via a volume submitter or an individual determination letter. Placing Compliance and Suitability as top priorities, NPP regularly provides CPAs and tax-attorneys with NASBA approved CPE and MCLE on pension compliance across the nation.
Opportunity
The Workers, Employee, Recovery Act (WERA) passed in Dec. of 2008 has brought positive changes to the landscape of qualified retirement plans. Most significantly IRC 404(a)(7). This now allows business owners to deduct contributions to both a defined benefit pension plan and defined contribution plans. i.e. 401(k)/profit sharing. NPP's partner CPA firms and tax advisors have brought significant value to their existing clients that qualify for such tax-saving concepts. In addition, many new clients have been generated for CPA firms that have incorporated NPP's services. Utilizing NPP's extensive experience and bonding insures a properly structured, funded and compliant pension plan.