Do you have a Roth Solo 401(k) at TD Ameritrade? If so, you will lose the ability to make after-tax contributions to your account at TD Ameritrade by December 1, 2022. The good news is we can manage your Roth Solo 401(k) assets for you, you can keep your own TPA, and you can still make after-tax contributions to take advantage of the Mega Backdoor Roth strategy. To learn more about the transfer process, view our informational brochure.

Are you a small business owner? When you get older (above 50), a cash balance pension plan may be a good retirement plan to adopt. 401(k) plans are a great starting place for your business’s retirement plan, but it may be time to add on another plan if your income is in a high tax bracket.

With a 401(k) plan, your maximum annual addition is $61,000 per year (2022). Having a Roth 401(k) plan is even better, and utilizing the Mega Backdoor Roth strategy is an amazing place to start if you are a high income earner. But as you enter your 50s and the advantages of Roth are less pronounced, you may want to investigate reducing your tax-burden. This is especially true if you are in the top income tax brackets (32%, 35%, or 37%).

Enter the potential for a Cash Balance Pension Plan (CB Plan).

When I see the word “SEP”, my mind goes to a SEPtic system. Immediately, I get the unpleasant thought of what’s inside. Not a pleasant thought. Thankfully, a SEP IRA is the exact opposite, and it provides business owners with a tax-advantaged way to save for retirement. Now that’s the opposite of gross. There are two audiences to which this post is aimed to serve. First, sole business owners with no employees. Second, small business owners with relatively few employees. Before we differentiate, let’s go over some introductory details on the SEP IRA.