If you’re a business owner, professional, physician, or self-employed, and a high-earner, you may pay higher taxes than most Americans. Individual income taxes are the IRS’s biggest revenue source and the top 50% of all taxpayers paid 97% of the total income tax paid.[i] The good news is that there are some financial options that you may be able to take advantage of to lessen your taxes and keep more of your hard-earned money. In this article, we will go over some of the basics of the Defined Benefit Plan (DB), the Defined Contribution Plan (DC), and Cash Balance Pension Plans.
If you're like most people, most of the time, you focus your financial efforts on maximizing your current income.