BRIDGING THE GAP IN FUNDING

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Most individuals earning more than $200,000 per year would put more into their retirement plans if the current contribution limits did not apply (see details below on the contribution limits for tax year 2019).  Said another way, the current contribution caps are discriminatory against the high income earners (creating a gap in retirement savings for those that want their retirement income to be correlated with their work income).

We have solutions that bridge this gap.

Blue Star specializes in supplemental retirement plans for high income individuals that are complementary to existing employer sponsored retirement plans.  Like traditional pension plans, our programs provide current tax deductions as well as income tax free retirement income (nearly always greater than the after tax income available through traditional plans).  Also, our plans are non-qualified and not governed by ERISA which means (a) there are no statutory contribution limits and (b) there are no rules dictating which employees must be covered by the plan.  In many cases, our supplemental programs are put in place only for the business owner and possibly one or two key executives in the firm.

The question to ask yourself is simple.

If you could put any amount into your current pension, how much would you put in?

If your answer is more than the current ERISA contribution maximums, then let us work with your current advisors and design a non-qualified supplemental retirement plan for you.

Deductible Retirement Plan Contribution Limits For Calendar Year 2019:

Certain limits may also apply if the client or spouse is covered by a employer sponsored plan.

Defined Contribution Plans – 2019 Contribution Limits

(Examples include 401(K) and 403(B) plans)