William Bitters Discusses Tax-Free Retirement Plans for Business Owners
As a business owner, William E. Bitters knows you need to think about your future, and that means planning your retirement as soon as possible. With so many retirement plans out there, the selection can be overwhelming, but William Bitters knows that it doesn’t need to be that difficult. William Bitters is the President of United Financial Information Services (UFIS) and has been working in the financial industry for over 34 years. We spoke with William to go over everything you need to know about tax-free retirement plans for business owners, and why it’s important that you start today.
To help ensure that you have a financially secure retirement, it is wise to create a plan early in life, and that becomes especially important when you become a business owner. Some of the key benefits of a tax-free retirement plan is that it more efficiently positions dollars from your corporate pocket to your personal pocket. An account is considered tax-free if there is no federal or state tax due on income earned in the account both when the income is earned and when it is distributed or withdrawn. Through a tax-free retirement plan, money can be invested and grow without owing future taxes on growth, even when you withdraw the funds to spend.
William Bitters suggests diversification for your business exit strategy. What does that mean? Consider that you own a local bookstore, and something happens in the industry that makes every online book worth $2. This event would have an impact on the health of your business, and without diversification, you might end up losing everything. Diversification is a type of insurance for business owners looking to create a stable and reliable future for their employees and families.
It is also important to attract and retain employees, especially for vital members of the team, primarily because in traditional qualified plans, you can’t differentiate partners from hourly paid workers. In many cases, costs for tax-free retirement plans don’t cost employees much of anything at all. If an employee leaves, for example, the retirement solutions can be tested and have optional tax efficient living benefits such as long-term care. This means tax-free income for life, and it won’t reduce your Social Security income either.