Business solutions, asset protection, legacy building and generational wealth building strategies for business owners.

The Super Roth for Small Business Owners

The Super Roth uses after-tax contributions as premiums into a permanent life insurance policy – whole life, indexed universal life or variable universal life insurance. When the need for death benefit coverage and retirement income collide, the perfect storm is created for a Super Roth is created. These policies are structured in a manner to minimize the life insurance death benefit and maximimize the tax-free cash accumulation growth allowed within policy limits set forth in IRS Section 7702.



Do you have KEY employees that you cannot afford to lose? What about key sales professionals, engineers, managers, directors or anyone that is critical to the operation and continuity of your business? Keyman insurance can be defined as an insurance policy where the proposer (owner) as well as the premium payer is the employer, the life to be insured is that of the same employer's key employee (Keyman) and the benefit, in case of a claim, goes to the employer. Keyman provides business continunity and peace-of-mind if the unthinkable were to happen.

Split Dollar Plans


In a split-dollar plan, an employer and employee execute a written agreement that outlines how they will share the premium cost, cash value, and death benefit of a permanent life insurance policy. Split-dollar plans are frequently used by employers to provide supplemental benefits for executives and to help retain key employees. The agreement outlines what the employee needs to accomplish, how long the plan will stay in effect, and how the plan will be terminated. It also includes provisions that restrict or end benefits if the employee decides to terminate employment or does not achieve agreed-upon performance metrics.

Group Whole Life and Term Life


Built-in guarantees with a variety of group life options for your workforce. Group Whole Life typically comes with three benefits; 1) Guaranteed death benefit, 2) Guaranteed cash value and 3) Guaranteed level premiums. Group term life insurance is a type of term insurance whereby the insurer issues the employer a master contract with coverage extended to employees. Group term life insurance is relatively inexpensive compared to individual life insurance. As a result, participation is high. It is commonly a component of a comprehensive benefits package.



The good old traditional IRA is available for anybody who has an income. There is never an employer match and the maximum contribution limit is $6,000. When you turn 50 you can start making extra $1,000 contribution every year (this is called the annual ‘catch-up’). Traditional IRA’s are great, they allow you (or your advisors) to control the asset allocation and define your preferred level of risk tolerance and growth. A GREAT PLACE TO START and you do not need any assistance from your employer.


Small business employers and their employees can contribute to a Simple IRA. The maximum annual contribution amounts to $12,500. Employers match 1% to 3% of total pay or contribute a fixed 2% employer contribution to all employees. Catch-up is capped at $3,000 but it is possible to continue to make contributions after age 70½. Small business owners and self-employed people qualify for a a simple IRA with the advantage of a simple IRA over a traditional IRA being you can contribute up to $12,500 vs. $6,000.


The SEP-IRA, like the Simple IRA, is available to small-business employers and employees. Contributions are limited to 25% of salary with $53,000 being the absolute maximum contribution allowed. All contributions are made by the employer. Caveat: you cannot contribute a higher percentage for yourself than you do for your employee(s). While there is no room for catch-up payments, contributions are permitted after age 70 ½. The contributions and any capital growth are tax-deferred so you will end up being taxed upon withdrawing funds. You can start taking money out at age 59½, but you don’t have to do so until age 70½.


The Roth IRA is similar in many ways to the traditional IRA except Roth IRA contributions are with AFTER TAX dollars. Again the maximum annual contribution amounts to $6,00. There is also the $1,000 catch-up.Another difference between them is the timing of when you get a tax break or pay taxes on the original income earned: the traditional IRA the contributions are tax-deductible when you earn the original income  but any deductible contributions and earnings you withdraw or that are distributed from your traditional IRA are taxable; with the Roth IRA once again, you do not deduct any contributions up front on your taxes, but all withdrawals are tax-free.


Defined-benefit plans, aka pension plans or qualified-benefit plans, are termed “defined benefit” because employees and employers know the formula for calculating retirement benefits ahead of time, and they use it to define and set the benefit paid out. This fund is different from other retirement funds, like retirement savings accounts where the payout amounts depend on investment returns. Poor investment returns or faulty assumptions and calculations can result in a funding shortfall, where employers are legally obligated to make up the difference with a cash contribution.

SOLO 401k

The Solo 401(k) is accessible for sole proprietors of small businesses and their spouses. Contributions are capped at 25% of profits plus $18,000 — that amount can never go higher than $53,000. With the Solo 401(k), there is no employer matching. Catching up can happen with big leaps, however, with up to $6,000 in catch-up contributions possible. That’s a great feature if you are running behind on building your nest egg or didn’t have enough cash coming in at the beginning of the year. As with a traditional 401(k), your contributions are pre-tax, and you are later taxed on withdrawals in your retirement.


Super Roth’s use after-tax contributions as premiums into a permanent life insurance policy – whole life, indexed universal life or variable universal life insurance. The policy is structured is a manner to minimize the life insurance death benefit and maximimize the tax-free cash accumulation growth allowed within policy limits set forth in IRS Section 7702. The Super Roth is best suited for professionals between the ages of 35-55 – OR – agents with at least 20 years until planned retirement. If you are beyond the 20 year horizon to retirement, the Super Roth is a superior option.


The ONLY option that you can’t afford to do. In today’s world of indepedently contracted solo-preneur agents, there is very little in the way of employer contributions to retirement funding. Don’t fall into the trap of doing nothing – OR – waiting too long to do something. Above all, good ideas are less than worthless unless you take personal intent filled action to implement them. Studies repeatedly validate that every year you wait to start collecting on your own retirement planning deductions/contributions that the losses in future value are both irreplaceable and shockingly significant!



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