Tax legislation passed in the mid-1990s limited annual contributions to qualified retirement plans, restricting the ability of business owners, professionals, and key highly compensated employees (HCEs) to save for retirement on a tax-favored basis. To help assure adequate retirement income, there are a number of nonqualified alternatives, including the traditional deferr
A business will is far more than a legal document designed to transfer assets upon the death of an owner or partner. It is a comprehensive estate planning tool that can include everything from management plans, and other documents necessary for a company’s continued operation and future health, to shareholder buy-sell agreements.
Federal law requires that participants in employer-sponsored retirement plans designate their spouse as their beneficiary unless the spouse waives this right in writing. Assuming that you and your spouse adhered to this practice, a document known as a Qualified Domestic Relations Order (QDRO), which is part of a divorce settlement, specifies how retirement assets are divided.
Successful entrepreneurs invest a great deal of time and effort building their companies. With the day-to-day demands, it is often difficult to imagine selling or stepping down from your business. But in order to help build financial security for your future, minimize estate taxes, and ensure business continuation, it is important to plan ahead.
Most people think estate planning is only for the wealthiest of people. Certainly, the 55% of Americans who died without a will thought so, even though all of their estates ended up in probate court subject to the laws of the state. Sadly, the surviving families were thrust into a situation that resulted in unnecessary distress, expense and, for many of them, devastating financial c