Business Owners Can Put More Away for Retirement. Here’s How …


By: Jeff Roberto, CFP®, CMFC®, MBA

As a business owner, did you know that you could put more money away into your retirement plan?

Contributing the maximum amount to your 401(k) is the right thing to do, but perhaps it’s not enough to meet your retirement goals. You can contribute even more to your 401(k) to secure your future. Unfortunately most defined contribution plans (401(k) and profit sharing) are subject to contribution limits (currently $53,000 per year). As a business owner, you have the option of a traditional defined benefit plan or a cash balance plan which permit higher contributions, depending on your business structure.

However, there is another little-known qualified retirement plan designed to optimize the benefits of both a defined benefit plan and cash balance plan, while eliminating the structural limitations of these plans and minimizing costs. It’s called The Direct Recognition Variable Investment Plan (VIP), which is an IRS approved qualified retirement plan designed for business owners and professionals who seek high tax deductible contributions in excess of the defined contribution plan limits.

How VIP Works:

VIP participant account balances increase or decrease in direct relationship to investment results, eliminating the underfunding risk associated with traditional defined benefit pension plans and cash balance plans. Participants may access their 401(k) profit sharing and VIP account balance at any time online, or via smart phone or telephone.

If you’re interested in learning about how you can save even more for your retirement, contact us directly at 631.218.0077 or at

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