A Realtor's Deferrred Compensation Plan

A realtor’s deferred compensation plan (DCP) cannot follow a traditional suit.  The traditional 401k, or pretax dollar, DCP is not usually an avenue pursued by realtors.  Why?  Because they don’t operate on a salary or hourly schedule, therefore funding into these types of DCPs can prove to be difficult. 

A realtor is usually a self employed professional that requires liquidity at a moment’s notice and the flexibility to fund the plan at their discretion.  This poses a problem for the traditional DCP.  For example, if a realtor participates in a DCP (like a 401k or IRA) and is under the age of 59 ½, they will incur a 10% penalty from the Federal Government for earl withdrawal, and will end up paying ordinary income taxes on all of the funds withdrawn.  Not to mention they are capped on how much they can contribute each and every year.  What a realtor needs instead is a post tax DCP that is exempt from these restrictions with all the desired flexibility. 

DCPs that we offer are funded with post tax dollars, and if properly structured can come with all kinds of bells and whistles.  First off, all of the DCP plans we offer for self employed individuals will avoid all future market volatility and will allow for moderate returns that grow tax deferred with the capability of earning interest as high as 12% year in and year out.  Some of our DCPs come with a guarantee of 2% credited in years of volatility or market downturns (regardless of how far the market falls).  Secondly, our DCPs do not have any penalties for early withdrawal, nor is there any restriction on how much can be contributed to the plan each year (payments to the plan are flexible to coincide with commission checks).  Finally, the funds can be structured to avoid any Federal income tax upon withdrawal through the form of a loan against your own funds. 

Both small business owners and professionals are actively using these types of strategies in order to protect themselves against rising federal income taxes and expected volatility.  They are applauding the fact that these vehicles do not require structured payments to fund the DCP while maintaining liquidity in order to maintain day to day operating expenses, while maintaining the capability to withdrawal the funds exempt from federal income tax.  In fact, many businesses are using this strategy similar to a checking account in order to handle monthly expenses.

To learn more about how these unique benefits can work for you, please fill out our customer contact submission form.