HLplans “100% Peace-of-mind” Financial Plan HLplans “100% Peace-of-mind” Financial Plan HLplans “100% Peace-of-mind” Financial Plan

Qualified Plan

Individual 401(k) Plan

posted Oct 23, 2009 11:16 AM by Hong Lu [ updated Oct 29, 2009 8:27 AM ]

It is a retirement savings plan designed specifically to meet the needs of small business owners who want to take full advantage of their plan contributions. In 2009, you can contribute up to $49,000, depending on your income level.This is based on combination of both employer and employee contributions. While employer contributions are limited to an amount up to 25% of an individual’s compensation, employees also can make an elective deferral of up to $16,500 of their compensation. This combination allows you to defer a significant portion of your current income into a retirement plan.

One-Person Defined Benefit Plan

posted Oct 23, 2009 11:15 AM by Hong Lu [ updated Nov 28, 2009 1:58 PM ]

The potential for higher annual contributions is what makes a one-person defined benefit plan appealing to certain business owner. In the right situation, the tax-deductible annual contribution calculated may be significantly greater than what most defined contribution plans allow. Today it’s possible to contribute $100,000 or more annually to a defined benefit plan, and deduct those contributions on your income tax return..