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Are you maximizing your current retirement plans but still looking for more advanced strategies to secure your future and take care of key employees?

In this episode, Mike Jesowshek and retirement expert Matt Ruttenberg discuss advanced retirement strategies for business owners who have maximized basic retirement plans. They explore qualified and non-qualified plans, focusing on cash balance plans and deferred compensation plans, which offer significant tax benefits and flexibility. They emphasize the importance of tailoring retirement plans to individual business needs and revenue levels, highlighting the potential for substantial contributions and long-term tax advantages.

[00:00 - 04:41] Introduction and Overview

• Mike introduces the topic of advanced retirement strategies and welcomes Matt Ruttenberg.
• Matt explains that advanced retirement strategies are not for everyone.
• He introduces the concept of layering different retirement plans.

[04:42 - 10:18] Retirement Plan Stack and Qualified vs. Non-Qualified Plans

• Matt explains qualified plans, including cash balance plans and their benefits.
• He details the cash balance plan, its benefits, and its design for high contributions.
• He also introduces non-qualified plans, highlighting deferred compensation plans.
• What are the benefits of non-qualified plans for key employees and tax planning?

[10:19 - 17:22] Tax Code 7702 and Practical Considerations and Customization

• Matt explains Section 162 plans and the use of life insurance platforms.
• What are the benefits of tax code 7702 for long-term tax-deferred growth and tax-free withdrawals?
• Retirement plans can be customized based on business needs.

[17:23 - 22:51] Customized Retirement Plans and Non-Qualified Plan Benefits

• Matt explains the importance of qualified plan design and customizing retirement plans to fit individual business needs.
• Different levels of revenue unlock various plan options.
• What are the benefits of non-qualified plans for business owners and key employees?

[22:52 - 26:31] Common Misconceptions

• Matt addresses misconceptions about 401K plans.
• He shares the importance of understanding plan documents and options.

Direct Quotes:

"It's all about how you get the money out of the company and into these more advanced plan options." - Matt Rutenberg

"Not all 401Ks are created equal. It all comes down to the plan documents and how those are designed." - Matt Rutenberg

"Deferred compensation plans are often referred to as 'golden handcuffs' because they incentivize key employees to stay long-term." - Matt Rutenberg

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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

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