Edward Jones Owner DB Plan
Description
The Edward Jones Owner DB® Plan is a defined benefit plan ideal for businesses with no employees other than owners and their spouses (including self-employed individuals, corporations and partnerships) who desire to significantly increase or even maximize their retirement contributions.
Objective
Allows you to make the maximum possible tax-deductible contributions for retirement while earnings grow tax deferred.
Suitability
This plan should be considered by business owners:
- With no employees other than their spouse
- Who want to contribute more than $49,000 or 25% of their compensation
- Who are at least 45 years old
- Who want to retire within 3 to 15 years
- With relatively stable income, typically over $100,000 annually
Plan Features
- Contributions - A defined benefit plan allows you to make tax-deductible retirement contributions exceeding $49,000 or 25 percent of your compensation. Contributions frequently exceed $100,000 per year. You (and your spouse) may also make additional salary deferral contributions for 2009 of up to $16,500, or if you are age 50 or older, $22,000. The additional salary deferrals can be pre-tax or after-tax Roth or a combination.
- Deadlines - The plan must be established by your business year end (December 31 if a calendar year) of the year for which contributions will be made.
- Benefits - Contributions are tax deductible. Earnings grow tax deferred until distribution.
- Additional Considerations - Defined benefit plans require annual contributions over a period of at least three years. However, if business conditions change, the plan may be amended to adjust annual contributions, either lower or higher, as needed.
For more information, please contact your local financial advisor.
