How to Maximize Pre-Tax Retirement Savings Limits for Solopreneurs
10 / 05 / 22

How to Maximize Pre-Tax Retirement Savings Limits for Solopreneurs

If you’re a solopreneur or high-income 1099 professional, you should take advantage of every opportunity to save for retirement. But you don’t want the IRS to take more of your hard-earned money than they need to as you save.

So, how can you put more money toward retirement while minimizing your tax burden?

In Episode 30 of The 3 Wins Podcast, I sat down with Matt Joines, a Certified Financial Planner and member of Legacy’s senior leadership team.

We talked about how solopreneurs, like you, could be in a position to increase their pre-tax retirement savings above the 401k limits by several hundred percent annually.

This episode is a must-watch if you want to learn about strategies to potentially raise your pre-tax savings limits!

Watch the full episode here. Below are the three big takeaways from the episode for easy reference.

(Watch Episode 30)

Episode Highlights

Here are a few highlights from Episode 30 with Matt Joines:

cash balance examples

1. Think beyond the 401k.

If you're in real estate, an attorney, a doctor, or a high-income sales rep, you have retirement savings options you might not have thought about. This episode will open your mind to other types of plans, such as profit sharing and cash balance plans. You’ll gain a vision for how to use these plans to accelerate your financial independence.

2. Consider profit sharing and cash balance plans to exponentially increase your pre-tax savings limits.

When you tack on this layered approach of adding in profit sharing and cash balance plans on top of a 401k, you're looking at anywhere between 700 to 1500% in increased savings limits. We've had plenty of conversations with people where they say, “Wait, I can save how much? And it's a tax deduction?” So, it's a great story to share.

3. Smart retirement savings planning begins by knowing your numbers.

You say, “Here's what I'm making on an annual basis—say, $500,000. After I take out my expenses, here's what my pre-tax net income looks like.”

Now it comes to paying taxes on that income. We believe in everyone paying their fair share of taxes. But the idea is that if you can do something more efficiently when saving for retirement, and there is tax flexibility to do so, then you owe it to yourself to look into it.

Connect with Matt. 

Connect with Russ.

Connect with Sean. 

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About the Author: Russell Clemmer is president of Legacy Advisory Partners, an Atlanta, Georgia-based financial services firm that believes that the key to unlocking your company’s full growth potential can be found in The 3 Wins Framework.

To learn more about how to apply The 3 Wins Framework in your business, download our FREE whitepaper, “The 3 Wins: How to Unleash the Collaboration Effect on Profits in Your Company,” here.

Find The Great 8: A New Paradigm for Leadership, by J. David Harper, Jr., CEO of Legacy Advisory Partners on Amazon today!

Disclaimer: Discussions in this show should not be construed as specific recommendations or investment advice. Always consult with your investment professional before making important investment decisions. Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer member FINRA/SIPC. Advisory services through Investment Advisor Representatives of Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Legacy Advisory Partners are not affiliated.