Pension Plan Comparison: Choosing the Right Retirement Plan for Business Owners in 2026

Key Takeaways

• Business owners can choose among SEP IRA, SIMPLE IRA, Solo 401(k), traditional 401(k)/profit-sharing, and cash balance/defined benefit plans—each with distinct 2025–2026 contribution limits and tax rules

• Higher-earning owners (often $500,000+ income) may capture the largest tax deductions and retirement savings by combining a 401(k) profit-sharing plan with a cash balance pension

• Plans differ significantly in flexibility: some allow large, variable contributions (Solo 401(k), SEP IRA), while others require predictable annual funding (SIMPLE IRA, cash balance plans)

• The right plan depends on your age, income stability, employee count, and timeline to retirement or business exit

• Revolutionary Wealth specializes in helping business owners compare, design, and implement retirement plans—book a consultation to get your personalized roadmap

Introduction: Why Pension Plan Comparison Matters for Business Owners

The term “pension” conjures images of gold watches and guaranteed monthly checks from a corporate employer. But for today’s business owner, pension plan comparison means something different: evaluating a mix of modern retirement plans—401(k)s, SEP IRAs, cash balance plans—that can shelter hundreds of thousands of dollars from taxes while building serious retirement security. Different plan structures offer different rewards for both business owners and employees, depending on features like employer contributions and investment management.

Whether you’re a solo consultant, a partner in a professional practice, or an owner managing a team of 3 to 50 employees, the retirement plans you establish directly impact your taxable income today and your retirement income decades from now. Many workers say they are behind on retirement savings, and the earlier you start investing for retirement, the more your money can compound. With 2025 and 2026 IRS limits now in effect—and potential tax law changes on the horizon—plan design has become particularly important for high earners approaching retirement.

Revolutionary Wealth is an independent financial advisory firm helping business owners coordinate tax strategy, retirement saving, and eventual business exit. In this article, we’ll compare major retirement plans types by contribution limits, tax benefits, and flexibility. Retirement plans are often only available through an employer, which can limit options for some workers. By the end, you’ll know which structures fit your situation—and how to take the next step.

Core Pension Categories: Defined Benefit vs. Defined Contribution

Before diving into specific plans, you need to understand that pension plans primarily divide into two fundamental categories: Defined Benefit (DB) and Defined Contribution (DC) plans. These categories shape every retirement account you’ll consider.

Defined benefit plan (DB):The employer promises a specified monthly benefit at retirement, usually based on a formula—typically something like 1.5% × final average salary × years of service. For example, a 60-year-old owner earning $300,000 with 20 years of service might receive $90,000 per year for life. The employer manages and funds the plan on behalf of employees, often fully funding the plan based on actuarial calculations. The employer bears all investment risk, and if plan assets underperform, the business must contribute more. Portability is low for defined benefit plans since benefits are usually tied to long-term employment with one employer. Pension plans typically offer a monthly annuity or a lump-sum payment at retirement. Public sector jobs are more likely to offer traditional defined benefit pensions, while most private companies have shifted toward defined contribution plans.

Defined contribution plans (DC):The employer and/or employee contribute a set dollar amount or percentage into a retirement savings account on behalf of the employee. For 2025, an employee can defer up to $23,500 into a 401 k. Defined contribution plans do not promise a specific amount of benefits at retirement. The retirement benefit depends entirely on how much goes in and how investments perform—investment gains or losses belong to the participant.

Cash balance plans sit in an interesting middle ground. Technically a defined benefit plan, they feel more like defined contribution plans because each participant has a “hypothetical account” with annual pay credits and interest credits. We’ll cover these in detail later.

Most business owners today use defined contribution plans (SEP, SIMPLE, 401(k)) and may layer on a DB or cash balance plan when income and tax rates are high enough to justify the additional complexity and cost.

SEP IRA: Simple, High-Limit Option for Owner-Only or Small Teams

A SEP IRA (Simplified Employee Pension) is exactly what the name suggests: a streamlined plan for small business owners and self employed individuals who want high contributions with minimal paperwork.

4.2 Tax Benefits

Contributions to a SEP IRA are tax-deductible, reducing your taxable income for the year. Investment earnings within the SEP IRA grow tax-deferred until withdrawal, allowing your savings to compound without immediate tax impact.

4.3 Flexibility

SEP IRAs are easy to set up and maintain, with no annual filing requirements for the employer. Defined contribution plans like SEP IRAs are generally easier to roll over to new employers or personal IRAs than defined benefit plans.

4.4 Best For

SEP IRAs are ideal for self-employed individuals or small business owners who want to maximize retirement savings without complex administration. Self-employed pensions, like SEP IRAs and Solo 401(k)s, offer higher contribution limits and tax advantages for small business owners or freelancers.

Contribution Limits

For 2025 and 2026, the maximum annual contribution is the lesser of:

• 25% of compensation, or

• $70,000 (2025 limit; check IRS updates for 2026)

Only the employer contributes to a SEP IRA—there are no employee contributions or salary deferrals. Contributions must generally be the same percentage of pay for all eligible employees, including the owner.

Tax Benefits

• Contributions are fully deductible to the business

• Funds grow tax-deferred inside the account

• Withdrawals in retirement are taxed as ordinary income

• Required minimum distributions (RMDs) begin at the applicable age (currently 73 for many retirees)

Investment earnings within the SEP IRA also grow tax-deferred, meaning you won't pay taxes on those earnings until you make withdrawals in retirement.

Flexibility

This is where SEP IRAs shine. The employer can adjust the contribution percentage each year—including making zero contributions in lean years. For businesses with volatile profits, this flexibility is a major advantage.

Best For

Solo owners or small employers who prioritize simplicity over design customization and don’t need employees to contribute from their own paychecks.

SIMPLE IRA: Low-Cost Plan for Small Employers Who Want Employee Deferrals

A SIMPLE IRA (Savings Incentive Match Plan for Employees) steps up from a SEP IRA when you want employees to share responsibility for retirement saving through their own deferrals.

Contribution Limits

Employee salary deferrals are lower than a 401(k):

• 2025: approximately $16,500 (verify current IRS limit)

• 2026: approximately $17,000

• Catch up contributions for age 50+: $3,500–$4,000

• Special catch-up for ages 60–63: approximately $5,250

Employer Funding Requirement

Unlike a SEP IRA, a SIMPLE IRA carries a mandatory employer contribution each year:

• Option 1:Match employee contributions dollar-for-dollar up to 3% of compensation

• Option 2:Make a 2% non elective contribution for all eligible employees regardless of whether they contribute

This matching contribution or non-elective obligation applies every year the plan is active.

Tax Treatment

• Pre-tax employee deferrals reduce W-2 income immediately

• Employer contributions are deductible to the business

• Investment growth is tax-deferred until withdrawal

• Early withdrawals within the first two years trigger a 25% penalty (versus the typical 10%)

Administrative Ease

No annual Form 5500 filing is required, and SIMPLE IRAs bypass the complex nondiscrimination testing that plagues standard 401(k) plans. This makes them appealing for businesses with under 100 employees.

Best For

Owners who want an inexpensive, low-complexity plan that lets employees contribute but can commit to fixed employer contributions each year.

Solo 401(k): Maximum Flexibility for Owner-Only Businesses

A Solo 401(k)—also called an individual 401(k)—is designed for businesses with no common-law employees other than the owner and possibly a spouse. It’s the retirement powerhouse for self employed professionals.

Contribution Structure

As a business owner, you wear two hats:

For a 50-year-old owner earning $200,000, this means:

• $23,500 employee deferral

• $37,500 employer contribution (25% of comp)

• $7,500–$8,000 catch-up

• Total: approximately $70,000+

Compare that to a SIMPLE IRA’s maximum of roughly $21,000—the Solo 401(k) isn’t even close.

Tax Options

Unlike a SEP IRA, a Solo 401(k) offers both:

• Traditional (pre-tax):Contributions reduce taxable income now; withdrawals taxed later

• Roth:Contributions made with after-tax money; qualified withdrawals are tax-free

Profit-sharing contributions are always pre-tax.

Flexibility

• Adjust contributions year to year based on business profitability

• Potential to borrow via participant loans (up to $50,000 or 50% of balance, subject to IRS limits) if the plan document allows

• Roth conversion options for tax planning

Best For

Consultants, independent professionals, and single-owner businesses with high income who want to maximize tax-deferred or tax-free (Roth) savings before adding employees.

Traditional 401(k) & Profit-Sharing Plans for Businesses with Employees

Once you have employees beyond yourself and a spouse, the traditional 401(k) with profit-sharing becomes the workhorse retirement plan for growing companies.

Employee Deferrals

For 2025:

• Standard deferral limit: $23,500

• Catch up contributions (age 50+): $7,500

• Special catch-up (ages 60–63): $11,250

• Pre-tax or Roth deferrals available

Employer Contributions

Typical structures include:

• Matching contribution:e.g., 50% match on the first 6% of pay

• Discretionary profit-sharing:Contribute up to the overall DC limit minus employee deferrals

• New comparability methods:Allocate profit-sharing to favor key employees within nondiscrimination rules

Profit-sharing contributions can be adjusted annually based on profits—or skipped entirely in tough years.

Tax Benefits

• Employee pre-tax deferrals reduce current taxable income

• Employer contributions are deductible to the business

• All investments grow tax-deferred

• Roth contributions offer tax-free qualified withdrawals

Compliance and Administration

Here’s where 401(k) plans get more complex:

• Annual nondiscrimination testing (ADP/ACP tests) unless safe harbor provisions apply

• Safe harbor 401(k) designs require 3–4% guaranteed employer contributions but exempt you from testing

• Annual Form 5500 filing required

• Plans over 100 participants may require independent audits (costing $5,000–$20,000 annually)

Best For

Growing businesses and professional firms that want to attract and retain talent with a competitive benefit while giving owners room to save aggressively through profit-sharing.

Cash Balance and Defined Benefit Plans: Supercharging Tax Deductions

For high-income owners—typically 45–65 years old—who want to accelerate retirement funding and dramatically reduce current taxes, cash balance and traditional defined benefit plans are the advanced strategies worth considering.

Cash Balance Plan Basics

Each participant has a “hypothetical account” credited annually with:

• Pay credits:e.g., 5–10% of compensation

• Interest credits:e.g., 4–5% guaranteed annually

Unlike a true defined contribution plan, the employer bears the investment risk. If plan assets underperform the assumed rate, the business must contribute more to meet the promised benefit.

Contribution Potential

This is where cash balance plans become powerful. Combined 401(k) + cash balance contributions for an older owner can often exceed:

These figures depend on age, compensation (up to IRS limits around $345,000+), and years to retirement. The older you are with fewer years to fund, the higher your allowable contribution.

Tax Treatment

• Contributions are fully deductible to the business

• Can materially reduce taxable income in high-tax years

• Funds grow tax-deferred

• Distributions in retirement are taxed as ordinary income

For an owner in the 37% federal bracket, a $250,000 contribution creates approximately $92,500 in immediate federal tax savings—plus state tax savings in most jurisdictions.

Flexibility and Commitment

Cash balance and defined benefit plans work best with multi-year funding commitments. Unlike a SEP or profit-sharing plan, you cannot simply skip contributions in a weak year without consequences. Minimum annual contributions may be required based on actuarial calculations.

Best For

Owners and partners at medical practices, law firms, consulting firms, and closely held companies with consistently high profits who want to rapidly build plan assets and shift income from high-tax current years to potentially lower-tax retirement years.

Plan Administration and Management

Plan administration and management are the backbone of successful retirement plans, ensuring that your plan assets are protected, your plan operates smoothly, and your business remains compliant with all legal requirements. Whether you’re running a defined contribution plan like a 401(k) or a defined benefit plan such as a cash balance plan, effective administration is essential for maximizing the benefits of your retirement strategy and supporting your employees’ financial futures.

Key Administrative Tasks

Every retirement plan requires a series of ongoing administrative tasks to function properly. For defined contribution plans, such as 401(k)s, this means overseeing employee contributions, processing employer contributions—including matching contributions and non-elective contributions—and managing the investment options available to participants. Administrators must also ensure that all contributions are made on time and in accordance with plan rules.

Defined benefit plans, including cash balance plans, add another layer of complexity. Here, administrators are responsible for tracking the promised benefit for each participant, monitoring plan assets to ensure there are sufficient funds to pay out future benefits, and making funding and investment decisions that align with actuarial requirements. Regular reviews of plan performance and funding status are critical to ensure the plan can deliver on its promises.

Selecting Service Providers

Choosing the right service providers is a pivotal step in managing retirement plans effectively. This process typically involves selecting a recordkeeper to track plan assets and participant accounts, an investment manager to oversee the plan’s investments, and often a third-party administrator (TPA) to handle day-to-day operations and compliance. For small business owners and self-employed individuals, it’s especially important to work with providers who understand the unique needs of plans like solo 401(k)s, SEP IRAs, and SIMPLE IRAs.

When evaluating service providers, consider their experience with retirement plans, the transparency and competitiveness of their fees, and the quality of their customer service. Providers who offer robust educational resources can also help your employees make informed decisions about their retirement savings. For self employed individuals and small businesses, finding a provider that offers flexible, scalable solutions can make plan management more efficient and cost-effective.

Recordkeeping and Reporting

Accurate recordkeeping and timely reporting are essential for maintaining the integrity and compliance of your retirement plans. This includes keeping detailed records of all employee contributions, employer contributions, investment gains, and plan assets. Regular statements should be provided to participants, helping them track their retirement savings account balances and investment performance.

Additionally, most retirement plans are required to file annual reports, such as Form 5500, with the IRS and Department of Labor. These filings help maintain the plan’s tax advantages and demonstrate compliance with federal regulations. Proper recordkeeping and reporting not only protect your business from penalties but also help maintain retirement security for all plan participants by ensuring transparency and accountability.

Fiduciary Responsibilities and Liability

Fiduciary responsibilities are at the heart of retirement plan management, ensuring that every decision made regarding the plan is in the best interest of participants and their future retirement income. Understanding your fiduciary role—and the potential liabilities that come with it—is essential for business owners, plan sponsors, and anyone involved in overseeing retirement plans.

Who is a Fiduciary?

A fiduciary is anyone who has discretionary authority or control over a retirement plan’s management or plan assets, or who provides investment advice for a fee. This can include business owners, plan administrators, investment managers, and even certain employees who make decisions about the plan. For self employed individuals managing their own solo 401(k) or other retirement plans, you are typically the fiduciary and must act with the same level of care as a large employer.

Fiduciaries are legally required to act prudently and solely in the interest of plan participants and their beneficiaries. This means managing plan assets responsibly, selecting and monitoring investment options, ensuring that plan fees are reasonable, and following the terms of the plan document. The goal is to provide the promised benefit to employees and safeguard their retirement income for the future.

Failing to meet fiduciary responsibilities can result in personal liability for losses to the plan. That’s why it’s crucial for business owners and self employed individuals to understand their obligations, seek professional guidance when needed, and regularly review plan operations to ensure compliance and protect both their business and their employees’ retirement security.

Comparing Plans by Contribution Limits, Tax Benefits, and Flexibility

Here’s a side-by-side pension plan comparison to help you narrow your choices quickly:

Tax Benefits Comparison

• Pre-tax options:All plans except Roth components reduce current taxable income

• Roth options:Solo 401(k) and traditional 401(k) offer Roth deferrals; SEP and SIMPLE IRAs can be converted

• Deductibility:All employer contributions are deductible business expenses

• Self-employment tax:SEP IRA contributions don’t reduce self-employment tax; some strategies can help self employed individuals optimize

Flexibility Comparison

• Variable contribution plans:SEP IRA, Solo 401(k), profit-sharing allow you to adjust or skip contributions based on cash flow

• Fixed commitment plans:SIMPLE IRA requires annual employer match/contribution; cash balance requires minimum funding even in lean years

• Loan availability:401(k) plans can allow participant loans; IRAs cannot

Employee Impact

• SIMPLE IRA: Broadly inclusive, easy for staff to understand

• New comparability profit-sharing: Can favor owners while passing IRS nondiscrimination tests

• Defined benefit plans: Often favor older, long-tenured staff (which may include you)

Decision Guidance

Think in phases:

• Early growth:SIMPLE IRA or SEP IRA for simplicity

• Mid-stage:401(k) with profit-sharing for flexibility and employee attraction

• Mature/high-income:401(k) plus cash balance plan for maximum tax deductions

Revolutionary Wealth routinely maps these phases across an owner’s 10–15 year horizon to determine the most effective way to build wealth.

Tax Strategy, Business Exit, and Pension Design

Pension decisions aren’t just about saving money in an account—they’re about integrated tax planning and positioning for your eventual business exit.

Tax Coordination

Plan contributions can be strategically timed around major events:

• Selling a business:Accelerate contributions in peak profit years before a sale to reduce taxable income

• Unusually profitable year:Use discretionary profit-sharing or cash balance contributions to offset a tax spike

• Stock/option exercises:Coordinate retirement contributions to balance income

Example:An owner planning a 2029 business exit with projected sale proceeds of $3 million might establish a cash balance plan in 2025. By contributing $200,000+ annually for four years, they shift $800,000 from the 37% bracket to tax-deferred growth—potentially saving $300,000+ in federal taxes.

RMDs and Distribution Planning

Different plans have different required minimum distribution rules:

• 401(k) and IRA funds can roll to new employer plans or traditional IRA accounts when you retire or change jobs

• Defined benefit plans may offer annuity payouts or lump-sum options

• Roth accounts within 401(k)s now have no RMDs during the owner’s lifetime under SECURE 2.0

Estate and Legacy

Qualified retirement plans integrate with estate planning:

• Name trusts or multiple beneficiaries strategically

• Consider life insurance to offset taxes on large retirement account distributions

• Plan for social security coordination and Medicare premium thresholds

Revolutionary Wealth builds coordinated plans matching your target retirement age, desired sale date, and family/legacy goals.

How Revolutionary Wealth Helps Business Owners Choose and Implement the Right Plan

Revolutionary Wealth is an independent, fiduciary-level advisory firm with experience overseeing over $100 million in managed assets and advising on over $500 million annually for business owners and pre-retirees.

Diagnostic Process

We start with a structured review of:

• Business cash flow and compensation history

• Current tax bracket and projected future income

• Owner’s age and retirement timeline (e.g., “planning for exit at age 62 in 2031”)

• Number, ages, and compensation of employees

• Current retirement balances across all accounts

Plan Design

Working with third-party administrators (TPAs), actuaries, and tax professionals, we model side-by-side scenarios showing:

• Contribution amounts for SEP vs. 401(k) vs. 401(k) + cash balance

• Owner benefit versus employee benefit allocation

• Projected tax savings over 5, 10, and 15 years

• Fees, administration costs, and compliance requirements

Implementation

We assist with:

• Selecting providers and custodians

• Drafting plan documents

• Educating employees on enrollment and own investments

• Establishing investment menus, including fixed indexed annuity and guaranteed-income options where appropriate

Ongoing Oversight

Annual reviews to:

• Adjust contributions based on profit and cash flow

• Maintain compliance with IRS and Department of Labor rules

• Align investment strategy as you move closer to retirement or a business sale

• Coordinate with estate planning and exit strategy updates

Ready to see which plan structure fits your situation?Book a consultation with Revolutionary Wealth to receive a personalized retirement plan comparison and implementation roadmap.

How to Get Started: Next Steps for Business Owners

You don’t need to become a pension expert. You need a clear decision and a guide to execute it.

Step 1: Gather Your Facts

Before meeting with an advisor, collect:

• Current and projected income for 2025–2028

• Number and ages of employees

• Current retirement balances (IRA, 401(k), other accounts)

• Target retirement or exit year

• Current business entity structure (S-corp, LLC, sole proprietor)

Step 2: Reflect on Your Goals

Ask yourself:

• Is my priority reducing taxes now or maximizing employee benefits?

• Do I want guaranteed retirement income or am I comfortable with market risk on my invested funds?

• How stable is my business income year to year?

• When do I realistically plan to retire or sell?

Step 3: Schedule a Consultation

Book a call with Revolutionary Wealthto compare 2–3 plan structures tailored to your situation. Our initial conversation focuses on understanding your goals and running preliminary numbers—no obligation, no pressure.

Act Before Deadlines Close Your Options

Key IRS deadlines to keep in mind:

• SIMPLE IRA:Must be established by October 1 for the current tax year

• 401(k):Must generally be established by December 31

• SEP IRA:Can be established up to the business tax-filing deadline (including extensions)

• Cash balance/DB plans:Require earlier-year planning due to actuarial requirements

The earlier you start, the more flexibility you maintain. Ideally, contact us by late summer to keep all options open for the current tax year.

Frequently Asked Questions

Can I have more than one retirement plan for my business at the same time?

Yes—many owners combine plans strategically. A common structure pairs a 401(k) with profit-sharing plus a cash balance plan to maximize contributions. However, combined contribution and deduction limits must be observed. Some combinations (like SEP plus 401(k)) have restrictions and require careful design.

You can also maintain a personal traditional IRA or Roth IRA in addition to employer-sponsored plans, subject to separate contribution and deduction rules. Revolutionary Wealth models these combinations to ensure you stay within IRS limits while maximizing value.

What happens to my pension or retirement plan if I sell my business?

Options depend on the sale structure—specifically whether it’s an asset sale versus a stock sale, and whether the buyer assumes the plan or it’s terminated before closing.

Typical outcomes include:

• Plan termination with rollover of assets to IRAs or a new employer’s plan

• Continued participation under the new company if they maintain the plan

• Lump-sum distributions or annuity options for defined benefit participants

We recommend beginning plan review 1–3 years before a planned exit so that funding, vesting schedules, and termination timelines align with your transaction.

How do retirement plan contributions interact with my personal tax bracket?

Pre-tax contributions generally reduce taxable income in the year made, often moving high-earning owners from a higher marginal bracket into a lower one. A $100,000 contribution at the 37% bracket saves $37,000 in federal taxes immediately.

The true benefit depends on the difference between today’s marginal rate and your expected rate in retirement—plus state income tax considerations. Revolutionary Wealth runs side-by-side projections showing after-tax wealth outcomes for pre-tax vs. Roth vs. taxable investing so you can see the net impact clearly.

Are there deadlines for setting up and funding these plans?

Yes, and they vary by plan type:

Cash balance and defined benefit plans have stricter timing and funding rules, making early-year planning essential. Contact Revolutionary Wealth well before year-end to keep all options open.

What if my income is highly variable from year to year?

Plans like SEP IRAs, profit-sharing 401(k)s, and Solo 401(k)s offer flexibility to adjust contributions annually based on profit. You can contribute aggressively in strong years and scale back when cash flow tightens.

SIMPLE IRAs require consistent employer contributions regardless of performance. Cash balance and defined benefit plans require minimum funding even in weaker years, which can create cash flow strain for cyclical businesses.

Revolutionary Wealth works with volatile-income owners—project-based businesses, seasonal firms, commission-based professionals—to design structures that balance tax savings with realistic funding commitments.

The right retirement plan can save you hundreds of thousands in taxes while building the retirement security you’ve earned.Don’t leave money on the table or miss key deadlines.

Book a consultation with Revolutionary Wealthto receive your personalized pension plan comparison and implementation roadmap. We’ll help you determine which structure fits your income, your timeline, and your goals—then support you through setup and ongoing management.

Disclosures:

This blog contains general information that may not be suitable for everyone. The information contained herein should not be construed as personalized investment advice. There is no guarantee that the views and opinions expressed in this blog will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors.Information presented hereinis subject to change without notice and should not be considered as a solicitation to buy or sell any security. Revolutionary Wealth LLC does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.Past performance is no guarantee of future results.

Indexed annuities are insurance contracts that, depending on the contract, may offer a guaranteed annual interest rate and some participation growth, if any, of a stock market index. Such contracts have substantial variation in terms, costs of guarantees and features and may cap participation or returns in significant ways. Any guarantees offered are backed by the financial strength of the insurance company. Surrender charges apply if not held to the end of the term. Withdrawals are taxed as ordinary income and, if taken prior to 59 ½, a 10% federal tax penalty. Investors are cautioned to carefully review an indexed annuity for its features, costs, risks, and how the variables are calculated. c) If this includes fixed and indexed annuities, you can add this combined version: Fixed Annuities are long term insurance contracts and there is a surrender charge imposed generally during the first 5 to 7 years that you own the annuity contract. Indexed annuities are insurance contracts that, depending on the contract, may offer a guaranteed annual interest rate and some participation growth, if any, of a stock market index. Such contracts have substantial variation in terms, costs of guarantees and features and may cap participation or returns in significant ways. Investors are cautioned to carefully review an indexed annuity for its features, costs, risks, and how the variables are calculated. Any guarantees offered are backed by the financial strength of the insurance company. Surrender charges apply if not held to the end of the term. Withdrawals are taxed as ordinary income and, if taken prior to 59 ½, a 10% federal tax penalty.

Not associated with or endorsed by the Social Security Administration, Medicare or any other government agency.

Maximizing your Social Security Benefits assumes foreknowledge of your date of death. If as an example you wait to claim a higher monthly benefit amount but predecease your average life expectancy, it would have been better to claim your benefits at an earlier age with reduced benefits.

Converting an employer plan account or Traditional IRA to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences including but not limited to, a need for additional tax withholding or estimated tax payments, the loss of certain tax deductions and credits, and higher taxes on Social Security benefits and higher Medicare premiums. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA.

The projections or other information generated by Monte Carlo analysis tools regarding the likelihood of various investment outcomes are hypothetical in nature, are based on assumptions that you provide which could prove to be inaccurate over time, do not reflect actual investment results, and are not guarantees of future results. Results may vary with each use and over time.