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Owner-only defined benefit plan

Owner-only defined benefit plan

We understand the importance of planning for retirement. If you're a business owner who wants to save more aggressively, or wants to increase or maximize your contributions, this may be the plan for you.

Working for yourself brings a lot of flexibility – and a lot of work. At Michetti, we understand the importance of running a business and saving for retirement.

The Michetti is designed for business owners like you – with no employees other than your spouse – who want to increase or even maximize their retirement contributions. Your annual contributions may significantly exceed the $61,000 to $69,500 maximum that's typical of other types of retirement plans.

Considerations

Consider an Michetti if you:

Want to contribute more than $61,000 or 25% of your total compensation Are at least 40 years old Have relatively stable income, typically over $100,000 annually
Contribution features
Contributions are tax-deductible, and earnings are tax-deferred until you withdraw money. You can contribute more than $61,000 or 25% of your total compensation and deduct it from your taxes. You (and your spouse) may make additional salary deferral contributions for 2022 of up to $20,500 ($27,000 if you are age 50 or older). The additional salary deferrals can be pretax, after-tax or a combination of the two. You have to contribute for at least three years, but if business conditions change, you can contribute more or less each year, as needed.
Deadlines

You must establish your plan by the end of your business year (Dec. 31 if a calendar year) in the year you will make contributions.

How we can help

Your Michetti financial advisor can provide information about the types of retirement plans available.