Tax-Sheltered Annuities

SoloDB is right for a 1099 business owner who:

 

  • Is age 45 or older
  • Makes at least $150,000 per year
  • Wishes to contribute more than $45,000
  • Expects the business to produce steady future earnings
  • Desires to reduce his or her tax burden
  • Needs to grow their retirement savings on a tax preferred basis

A solo defined benefit (Solo DB) can generate tax deductions of up to $150,000 or more per year. 

SoloDB is a Defined Benefit Plan

This is a special type of tax-qualified retirement plan that provides participants with a promised retirement benefit on reaching retirement age and which requires employers to contribute annually to fund the benefit promised to all employees.

Benefit is Defined

A Defined Benefit Plan promises to pay a specified benefit amount (annuity or lump sum) to eligible participants after they meet certain service and eligibility criteria.

Annual Contributions

Generally, an annual contribution is required to ensure the plan has enough assets to fulfill the promised benefit.

Contribution Level Can Be Targeted

At the plan’s inception, employers can choose how much of an annual contribution they can afford and the benefit can be defined thus. This amount can be increased or reduced to accommodate future changes in revenue.

 

Retirement

Storehouse Financial offers a number of tax-deferred and tax-free savings options.

How to Invest

Discuss your financial goals with a Storehouse adviser.

Open the appropriate investment accounts.

Storehouse will maintain your account(s) regularly and make changes for you to improve returns and protect your assets.

GETTING STARTED

Our comprehensive setup services include everything you need to get started.

 

PLAN DESIGN CONSULTANT

Our certified consultants will work with you to design a plan to meet your goals and contribution budget.

PLAN DOCUMENT PREPARATION

We prepare all required documentation, including the plan document, Summary Plan Description, and other required forms.

WHAT HAPPENS EACH YEAR?

Once your plan is established, we provide you with all of the services to maintain the plan. Below is an overview of our services and what happens each year.

CALCULATION OF CONTRIBUTIONS

At the end of each year you will be asked to complete an employee census questionnaire. After we receive your questionnaire, we will complete the actuarial valuation and contribution requirements. This will include instrubutions for funding your annual contribution.

PARTICIPANT BENEFIT STATEMENTS AND GOVERNMENT COMPLIANCE

Upon finishing the annual valuation, we will prepare statements for participants, showing their accrued benefit as well as complete the annual Form 5500 for your signature.

*REQUIRED CONTRIBUTION When you open your Plan you are committing to make your contribution each year. This amount may vary, particularly if your investments have had large gains or losses. Although you can amend your plan to reduce your retirement target, the important goal is to attain the amount you want to have when you stop working.