Most business owners in Temecula and Murrieta don’t know and their CPAs haven’t made them aware they can actually pay for personal life insurance coverage as a deductible business expense and address retirement planning concerns at the same time.

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So if you are a business owner and you are complaining about taxes (aren’t we all) and are close to maxing out your qualified plan contributions early, here is an idea:

How would you like…

  • A current tax deduction
  • Tax deferred growth
  • Tax-free income on distributions

Sound a whole lot like a combination of a traditional IRA and a Roth IRA? How about a supercharged Roth IRA? Too good to be true? It may seem so, but it is an insurance plan that has been around for years — Section 79. Why aren’t you hearing more about it? Because very few financial planners in Temecula and Murrieta know about it and only two carriers specialize in products in this market in CA. At Rock Solid Wealth Designs our Section 79 plan has a very significant additional benefit that provides for the plan owner in case of a major health crisis.

The current tax benefits and retirement income a Section 79 plan provides are great, but how else can a Section 79 plan help Temecula and Murrieta business owners with 10 employees or less that are C corporations?

How about estate planning? Death benefits can be structured so that they are outside the taxable estate while the business owner or participating employee has access to the cash values for retirement income. Are you asking yourself, “What about taxation at the personal level? Won’t I have to pay taxes on the premiums being paid by the business?”

The answer is yes and no. The real advantage of the Section 79 Plan regarding personal taxation is the discount that the employee/owner receives on your personal taxes. For instance, rather than paying on the full amount as you would with a Section 62 Bonus Plan, you are only taxed on a percentage of the premium. The result is significant savings.

Are you a local C Corporation in Temecula or Murrieta with 10 employees or less? If so this may be a great option for you. Temecula doctors and dental practices may be ideal business owners to consider a properly structured Section 79 plan.

Curious? Call us at 951-878-9010 to learn more and see if a plan that provides a current tax deduction, tax deferred growth, and tax-free income on distributions makes sense for your business.