Best Tax Attorneys in Pasadena, CA

There is a process to follow in terminating your plan, including adoption of amendments and possibly submitting to government agencies. We will calculate your benefit under the plan and assist you in preparing final filings that you will submit. Depending on how much money you have accumulated, you may have an excess or a shortfall to fund before your plan is terminated. Read more about Terminating Your Plan

Contributions must be made by the business that is sponsoring the plan. A sole proprietor may have more than one source of money but in no event can the sole proprietor deduct more than the net income generated from the business that is sponsoring the plan.

The deadline for pension plan contributions is no later than 8 1/2 months after the close of the plan year. For the contribution to be deductible, you must make it on or before the due date of your tax return (with extensions).

Your Defined Benefit plan places no restrictions on investment volatility. You and your investment advisor are responsible for selecting and managing your investments. If your investments earn above the assumed rate of return, your required contributions will decrease. If they earn below the assumed interest rate, your required contributions will increase.

Section 415(e) of the Tax Code was repealed. Because of the repeal, a business owner can now use a Defined Benefit plan to build assets without taking into consideration money already accumulated in other retirement plans.