Income Strategy

Self-Employed Retirement Strategy - Tax-Free Savings Without an Employer

Tax-free retirement strategies tailored for Self-Employed / Business Owners. Income range: $50,000 - $500,000+.

Retirement Landscape for Self-Employed / Business Owners

Self-employment tax (15.3% on first $160,200, 2.9% above that) effectively increases tax burden. No employer match. Must set up own retirement accounts. Variable income makes consistent contributions challenging. Health insurance premiums are deductible but complicate planning.

Common Retirement Challenges

Challenges that Self-Employed / Business Owners typically face

How IUL Solves These Problems

IUL's flexible premium structure accommodates variable self-employment income - contribute more in good years, less in slow ones. The cash value also serves as a business emergency reserve while building retirement wealth. No RMDs means the policy can accumulate as long as needed.

The Key Advantage: IUL policy loans are not considered taxable income at the state or federal level. This means no IRMAA triggers, no Social Security taxation thresholds crossed, and no impact on means-tested benefits.

Key Strategies for Self-Employed / Business Owners

SEP-IRA for large pre-tax deductions (25% of net income up to $69,000)

1 Solo 401(k) with Roth option for maximum flexibility

2 IUL for supplemental tax-free accumulation without contribution limits

3 Defined benefit plan for larger pre-tax deductions if consistently high income

4 Cash balance plan combined with profit-sharing 401(k)

Get a Retirement Plan Designed for Self-Employed / Business Owners

Work with an independent IUL advisor who understands the specific retirement challenges and opportunities for your situation.

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